The Republicans are accused of implementing a prescription drug program under Medicare, but failing to fund it. The Democrats complain the unfunded benefit is inadequate because of the coverage gap – the so-called donut hole. Therefore this benefit which has never been paid for is expanded. Affected Medicare beneficiaries received $250 in 2010. Drugmakers were required to reduce drug costs by 50% and health care reform phases out the gap over a number of years. Apparently sometimes something is not always better than nothing.
So we still have an unfunded basic benefit and now a much expanded benefit designed to benefit less than 10% of Medicare beneficiaries who reach the prescription drug gap. If you are a beneficiary who reaches the donut hole all this is a good thing. For those Americans who will pay for this coverage directly and indirectly, it may be a struggle.
While there is no doubt that the high cost of prescription drugs is a hardship for some people, it is also true that many states had their own drug plans for lower-income seniors before health care reform legislation. Listening to the rhetoric and reading the paper the perception can easily be that the vast majority of seniors are struggling with prescription costs. The reality as noted is that except for the ten percent who reach the donut hole each year, the basic benefit works quite well.
Could there have been a better way to deal with the ten percent on a needs basis as opposed to expanding another open-ended entitlement?
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