(Washington, D.C.) – Today, Congresswoman Carolyn McCarthy (NY-04) announced that new data shows that 5,420 seniors in the Fourth Congressional District of New York have so far received the $250 ‘donut hole’ checks, that were provided by the health reform law, to begin to close the Medicare prescription drug coverage gap – as of October 1, 2010.  In total, these seniors in our district have received $1.4 million to help pay their high drug costs.

Furthermore, an additional 3,880 seniors in the Fourth Congressional District are expected to enter the donut hole before the end of 2010 and will also be receiving a $250 check to help with their drug costs.  As a result, by the end of the year, a total of 9,300 seniors in our district will have received assistance to help cover the cost of their drugs.  The total amount of assistance provided to seniors in the district will be $2.3 million.

“Prescription drugs cost many seniors thousands of dollars a year and this check is a down payment on reducing prescription drug costs for seniors and eventually closing the donut hole altogether,” said Congresswoman McCarthy.  “The benefits of health reform are clear for our seniors: it will close the donut hole, strengthen Medicare, and extend Medicare’s solvency by more than a decade.”

One of the immediate benefits of the health reform legislation signed into law in March is this assistance to help seniors with high drug costs.  This year, all seniors who have prescription drug expenses of $2,830 or more – and thereby enter the Medicare Part D ‘donut hole’ coverage gap – are receiving a one-time tax-free $250 rebate check.  

These checks are being mailed out every couple of weeks.  Nationwide, as of October 21, 2010, more than 1.8 million seniors have received the $250 rebate check.  It is estimated that by the end of the year about 4 million seniors will have received the check nationwide.

In addition, under health reform, Part D donut hole benefits will increase beginning in January 2011, when all seniors who hit the donut hole receive a 50% discount on brand-name drugs, saving the average senior entering the donut hole more than $500 annually.  These discounts will save seniors in the district more than $4.9 million next year.  

The benefits to seniors with high drug costs increase on a regular basis under the health reform law.  The discount on brand-name drugs increases to 52.5% in 2013 and to 55% in 2015.  The savings continue to grow until the donut hole is completely eliminated in 2019.

Congressional Republicans created the donut hole – leaving thousands of seniors to choose between buying the prescriptions they need and putting food on the table – and now they promise to try to repeal the reforms that close it.

“There’s been so much misinformation spread Republicans,” said Congresswoman McCarthy.  “Seniors need to know all the benefits of reform – and for many, these checks are great news.”


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