Does the new health care law Does the new health care law have any provisions to deal have any provisions to deal

with the coverage gap in with the coverage gap in prescription drugs?prescription drugs?

Boston Elder Law AttorneysBoston Elder Law AttorneysSpecializing in Medicaid PlanningSpecializing in Medicaid Planning

Cohen & Oalican, LLCCohen & Oalican, LLC

617-263-1035- Boston617-263-1035- Boston508-821-5599 – Raynham508-821-5599 – Raynham978-749-0008 - Andover978-749-0008 - Andover

Medicare’s drug coverageMedicare’s drug coverage

Medicare’s drug coverage was inadequate for Medicare’s drug coverage was inadequate for approximately 8 million people in 2007. approximately 8 million people in 2007.

Medicare's Drug CoverageMedicare's Drug Coverage

Most Medicare plans have a prescription drug Most Medicare plans have a prescription drug coverage gap or “donut hole” , which forces coverage gap or “donut hole” , which forces you seniors to pay out of pocket for your you seniors to pay out of pocket for your prescription medicines to a certain limit before prescription medicines to a certain limit before the plan will begin to cover medication costs. the plan will begin to cover medication costs.

Medicare’s Drug CoverageMedicare’s Drug Coverage

Coinsurance, private payments and annual Coinsurance, private payments and annual deductible amounts are all taken into account deductible amounts are all taken into account for each plan’s limit within the coverage gap, for each plan’s limit within the coverage gap, however, even these high costs do not always however, even these high costs do not always translate to cost savings for many Medicare translate to cost savings for many Medicare recipients. recipients.

2010: 2010: Coverage Gap Rebate of $250Coverage Gap Rebate of $250

In March, the President signed a new health In March, the President signed a new health care law, which offers discounts and savings care law, which offers discounts and savings for seniors during the coverage gap period.for seniors during the coverage gap period.

The rebate is designed to assist Medicare The rebate is designed to assist Medicare recipients with prescription drug costs while in recipients with prescription drug costs while in the donut hole.the donut hole.

2010: 2010: Coverage Gap Rebate of $250Coverage Gap Rebate of $250

Here’s how it works—Beginning in 2010, Here’s how it works—Beginning in 2010, Medicare will send you a check for $250 as a one-Medicare will send you a check for $250 as a one-time payment, three months after the end of the time payment, three months after the end of the quarterly period when you reached your quarterly period when you reached your prescription drug coverage limit. prescription drug coverage limit.

It is important to note that the coverage gap rebate It is important to note that the coverage gap rebate only applies to Medicare recipients who are only applies to Medicare recipients who are eligible for the drug coverage and are not currently eligible for the drug coverage and are not currently receiving assistance from another source. receiving assistance from another source.

2010: 2010: Coverage Gap Rebate of $250Coverage Gap Rebate of $250

Seniors should also be advised that no Seniors should also be advised that no personal information has to be provided to personal information has to be provided to receive the rebate check, like the number of receive the rebate check, like the number of your bank account, your Social Security your bank account, your Social Security number or your Medicare information. number or your Medicare information.

If you are contacted by regarding the rebate If you are contacted by regarding the rebate payment who asks for personal information, payment who asks for personal information, please do not divulge any essential or pertinent please do not divulge any essential or pertinent facts about yourself. facts about yourself.

2010: 2010: Coverage Gap Rebate of $250Coverage Gap Rebate of $250

For more information about the coverage gap For more information about the coverage gap rebate check, call the designated location rebate check, call the designated location dealing with your particular plan. dealing with your particular plan.

2011: 50% Discount on Brand 2011: 50% Discount on Brand Medicine, 7% on Generic DrugsMedicine, 7% on Generic Drugs

Each year, extra savings will be added for Each year, extra savings will be added for Medicare recipients in the coverage gap until Medicare recipients in the coverage gap until the gap is finally closed in 2020. the gap is finally closed in 2020.

For 2011, the new health care law also For 2011, the new health care law also provides a 50% discount on branded provides a 50% discount on branded medicines and a 7% discount on generic drugs. medicines and a 7% discount on generic drugs.

If you have further questions please contact, If you have further questions please contact, Cohen & Oalican LLP, elderlaw attorneys in Cohen & Oalican LLP, elderlaw attorneys in

Boston, Andover and Raynham.Boston, Andover and Raynham.

Boston Elder Law AttorneysSpecializing in Medicaid Planning

Cohen & Oalican, LLCCohen & Oalican, LLC

617-263-1035- Boston617-263-1035- Boston508-821-5599 – Raynham508-821-5599 – Raynham978-749-0008 - Andover978-749-0008 - Andover