<<<Back to News Center 2012

Thursday, July 26, 2012

Medicare Beneficiaries in Puerto Rico Have Saved $97.2 Million on Prescription Drugs Under the Affordable Care Act

WASHINGTON, DC—Since the enactment of the Affordable Care Act in 2010, Medicare beneficiaries in Puerto Rico have saved a total $97.2 million on prescription drugs, Resident Commissioner Pedro Pierluisi announced today.

In addition, so far this year, 27,020 individuals in Puerto Rico saved a total of $17.3 million on prescription drugs in “donut hole” coverage, for an average of $642 in savings.

“Since becoming Resident Commissioner, I have consistently sought equal treatment for Puerto Rico under Medicare, Medicaid and other government-supported health programs. I am proud that so many Island residents have benefited as a result of the Affordable Care Act, which was enacted under the leadership of President Obama. The people of Puerto Rico, especially seniors and individuals with disabilities on the Island, can already see the improvements this bill is making in their everyday lives,” said Pierluisi.

When the Medicare Part D program was created, there was a gap in coverage where most beneficiaries paid 100% of their drug costs even after having paid their premiums. This gap in coverage is known as the “donut hole.”

The Affordable Care Act seeks to close this coverage gap over time. Nationwide, over 5.2 million seniors and individuals with disabilities have saved over $3.9 billion on prescription drugs since the law was enacted.

In 2011, Medicare beneficiaries that reached the donut hole gap began receiving a 50% discount on covered brand name drugs and 7% coverage on generic drugs.

“Since 2010, the savings in Puerto Rico have been dramatic. The data from the U.S. Department of Health and Human Services shows that, in 2010, these savings totaled over $22.6 million. In 2011, a total of 92,161 Medicare beneficiaries received more than $57.1 million in discounts, which is an average of $621 in savings per beneficiary on the Island. Likewise, in 2012 to date, beneficiaries have saved more than $17.3 million. And these savings will continue in future years,” said the Resident Commissioner.

The U.S. Department of Health and Human Services has projected that coverage for both brand name and generic prescription drugs in the gap will continue to increase over time until 2020, when the coverage gap will be closed altogether.