The voices of the 39 million people aged 65 and older in the United States may be some of the most influential in shaping the future of the health care overhaul. As lawmakers emphasize how the proposed House plan would close the “doughnut hole” in Medicare coverage, the powerful voting bloc has gradually swayed in favor of the bill, so much so that the AARP (American Association of Retired Persons) formally declared its support last month.
Medicare is the federal health plan for seniors over age 65. Its prescription drug benefit plan (Medicare Part D), in which 27.07 million Americans are enrolled according to the Centers for Medicare and Medicaid Services, was launched in 2006. The oft-mentioned “doughnut hole” refers to the gap in coverage between the initial coverage limit and and the catastrophic coverage threshold. After surpassing the initial limit,the beneficiary is financially responsible for the cost of prescription drugs until reaching the threshold.
It was designed to reduce the overall cost of the program but often forces a disproportionate burden on those with chronic illnesses. It is estimated 3.4 million seniors, and 32% of beneficiaries in New Jersey alone, fall into the hole yearly.
The House bill would close the gap gradually until it is eliminated in 2022.
