Washington, DC -- Congressman Eliot Engel said that to date, 86,164 senior New Yorker Medicare beneficiaries have received their ‘donut hole’ checks to begin to close their prescription drug coverage gap.

Under the Affordable Care Act, seniors whose prescription drug costs are so high that they fall in the Medicare prescription drug ‘donut hole’ coverage gap in 2010 are receiving this one-time tax-free $250 rebate. The fourth round of checks since health reform took effect has gone out over the last few days.

These checks are being mailed every few weeks, as an estimated one in 10 seniors and other Medicare beneficiaries hit the ‘donut hole’ coverage gap created by President Bush’s prescription drug reforms.  Experts estimate that a total of 4 million seniors will receive a ‘donut hole’ check over the next several months.

Nationwide more than 1 million Medicare beneficiaries have received a ‘donut hole’ check so far. 

In most cases, Medicare's Part D prescription drug benefit covers 75% of drug costs up to $2,830. After that, seniors must pay all of their own drug costs until total spending reaches $6,440 in a year. That $3,610 gap in coverage is knows as Part D's "doughnut hole."

Rep. Engel said, “The checks are just one benefit from health reform for seniors in the Medicare Prescription Drug program.  Beginning in January 2011, seniors caught in the donut hole will receive a 50% discount on brand name drugs.  By 2020, the donut hole will be completely closed.

“Prescription drugs cost many seniors thousands of dollars a year, and this check is a down payment on reducing prescription drug costs for them and eventually closing the donut hole altogether. This is for many the first example of how the health care reform bill will strengthen Medicare and help seniors - including by extending Medicare’s solvency by more than a decade.”

Once Medicare recipients have their drug costs for the year hit $2,830 a one-time $250 check will be automatically issued.  Making prescription drugs more affordable for seniors is only one of the many benefits for seniors included in the Affordable Care Act.  Under the new law, other benefits for seniors include:

Beginning on January 1, 2011, seniors will receive free preventive care services like mammograms and certain colon cancer tests and a free annual physical.

• Extends Medicare solvency by an additional 12 years, to 2029.
• Includes Medicare efficiencies, estimating seniors can expect to save on average almost $200 per year in premiums, by 2018.
• Continues to reduce waste, fraud and abuse in Medicare.
• Expands home and community-based services so seniors can stay at home instead of in nursing homes.

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