Kildee Announces that "Donut Hole" Checks Are on Their Way to Tens of Thousands of Seniors in Michigan

Rebates are part of the recently enacted health care reform

Contact: Erin Donar
(202) 225-3611

WASHINGTON, D.C. – Congressman Dale E. Kildee (D-MI) announced that starting today, Medicare will begin mailing $250 ‘donut hole’ checks to tens of thousands of seniors in Michigan.  Under the recently enacted health reform law, which Congressman Kildee strongly supported, seniors who fall in the ‘donut hole’ in 2010 will receive this one-time tax-free $250 rebate check. 

The so-called ‘donut hole’ is a gap in Medicare prescription-drug coverage that kicks in once a senior has purchased $2,830 worth of prescription drugs for the year. Up to that point, Medicare covers about $1,900 or two-thirds, of the cost of the drugs. For the next $3,610 worth of drugs, seniors are fully responsible for the cost of the drugs. After this point, Medicare covers 95 percent of the cost.  In 2009, 134,000 seniors in Michigan were affected by the ‘donut hole.’

“Too many of our seniors who worked hard all their lives are now being forced to choose between paying for the drugs to keep them healthy and putting food on the table – this is heartbreaking and completely unacceptable.  Today, help is on the way for seniors affected by the ‘donut hole,’ in the form of $250 rebate checks. This is only the first of many provisions in the health care reform that will benefit our seniors and help reduce their drug costs. I was proud to support this transformational health reform and look forward to all the good it will do for our seniors and for millions of other Americans,” said Congressman Kildee.

The ‘donut hole’ was created by the Republican controlled Congress in 2003 as part of the Medicare Prescription Drug, Improvement and Modernization Act. Congressman Kildee voted against this measure which has caused a strain on millions of American seniors.

‘Donut hole’ checks will continue to be mailed monthly over the next several months as seniors enter the coverage gap. Beginning in January 2011, seniors in the ‘donut hole’ will receive a 50% discount on brand name drugs.  By 2020, the ‘donut hole’ will be completely closed. Medicare recipients don’t have to do anything to get the $250 check – once their drug costs for the year hit $2,830 the one-time check will be issued automatically.

Making prescription drugs more affordable for seniors is only one of the many benefits for seniors included in the recently enacted health reform law.  Other benefits for seniors include:

•    Providing free preventive care services under Medicare, beginning in 2011.
•    Improving seniors’ access to doctors.
•    Expanding home and community-based services to keep seniors in their home, instead of in nursing homes.

###