Health Care Blog

More Seniors to Receive One-Time Donut Hole Rebate Checks

If you or a loved one are one of the millions of seniors who fall into the “donut hole” every year, help is on the way thanks to the Affordable Care Act.

Most Americans know about the “donut hole” – the coverage gap in Medicare Part D where beneficiaries have to pay all their drug costs.  Seniors in the donut hole often must choose between their prescriptions and basic living expenses.

This year, as qualifying seniors enter the “donut hole,” Medicare will send them a tax-free, one-time rebate check for $250. 

The second round of checks was mailed this week, helping more than 300,000 seniors struggling to pay their prescription drug costs thanks to the Affordable Care Act.

How Affordable Care Act Helps Veterans

The health care debate featured no shortage of rumors designed to misinform the American people about the Affordable Care Act. And while the debate has ended and implementation of the new law has begun, the rumor mill hasn’t slowed down. The latest rumor is the unfounded charge that “America's wounded warriors face a new tax on prosthetic limbs and other vital medical devices.” Nothing could be further from the truth. While the new law includes a tax on big medical device manufacturers, the tax won’t be passed on to veterans and wounded active duty military personnel and veterans will continue to receive prosthetic devices at no cost from the VA and TRICARE.

Here’s the truth behind the latest unfounded claim:

• Today, wounded veterans and active duty military receive prosthetic devices from the VA or TRICARE at no cost. That won’t change under the Affordable Care Act.
• We know medical device manufacturers will prosper under the new law -- the Affordable Care Act expands health insurance coverage to more than 30 million Americans and these newly insured individuals will use products made by the medical device industry. This is already a large and profitable business; sales in the medical device industry even before the Act takes effect are estimated to be $138 billion for 2010. The new tax applies to this industry and will help ensure we provide more Americans with affordable coverage choices.
• This is not a tax on consumers and claims that the tax will result in higher prices for prosthetics or other medical devices are wrong.  Prices and reimbursements for medical devices will continue to be negotiated between the device industry and insurance companies, retail establishments, and the federal government, in the case of veterans and active duty service members. And the full cost of prosthetics for veterans will continue to be borne by the government.