US health reform law saves $2.1 billion for 3.6 million Medicare recipients

Nearly 3.6 million people in the USA with Medicare saved $2.1 billion on their prescription drugs in 2011 due to the Affordable Care Act according to data issued last week by the Department of Health and Human Services (HHS). Savings for people with Medicare will increase over time. According to a new report issued from HHS, the average person with Medicare will save nearly $4,200 by 2021 because of the new law.

“The Affordable Care Act is already saving money for millions of Americans with Medicare,” said HHS Secretary Kathleen Sebelius, adding: “As we move forward, we will close the donut hole completely and save even more money for everyone with Medicare.”

The Affordable Care Act provides a 50% discount on brand-name prescription drugs and this year, a 14% discount on generics. Last year, it provided a 7% discount on covered generic medicines for people who hit the prescription drug coverage gap known as the donut hole, with 2,814,646 beneficiaries receiving $32.1 million in savings on generics.