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Thursday, February 2, 2012
NEW REPORT SHOWS NEBRASKA MEDICARE RECIPIENTS ARE BENEFITTING FROM HEALTH REFORM LAW
  • 24,070 Nebraskans with Medicare saved more than $15 million on prescriptions
  • Nebraska enrollment in Medicare Advantage is up 13% and premiums are down

February 2, 2012 – Today, Nebraska’s Senator Ben Nelson highlighted new data showing Nebraskans with Medicare are benefitting from the new health care reform law, increasing their enrollment in Medicare Advantage while Medicare Advantage premiums are decreasing, and 24,070 Nebraskans in the Medicare “doughnut hole” saved an average of $630 on their prescription drugs in 2011.

“This good news continues to confirm what I’ve been hearing directly from Nebraska seniors,” Senator Ben Nelson said. “The facts show the health reform law is saving thousands of Nebraskans millions of dollars on their prescription drugs, helping them live healthier lives. At the same time, enrollment in Medicare Advantage is continuing to rise and premiums for the program are going down.

“Many Nebraska seniors are on a fixed income and every dollar they can save makes a difference.

“These are real facts about real people. They show how health care reform is improving the lives of Nebraskans and citizens all across our country.”The U.S. Department of Health and Human Services reported today that 3.6 million Americans with Medicare saved a total of $2.1 billion on their prescription drugs in 2011.These are people who were in the so-called Medicare Part D “doughnut hole,” which is a gap in their prescription drug coverage. The coverage gap begins once an individual’s insurer has spent $2,840 on prescription medications in any calendar year. The Medicare beneficiary then has no coverage for the next $3,600 worth of prescriptions and must pay out of his or her own pocket.

Last year, the health care law created a 50-percent discount on brand-name prescription drugs and a 7-percent discount on generics for people who hit the doughnut hole. In 2012, the discount on generics will increase to 14 percent. By 2020, the donut hole will be closed completely.In Nebraska, this change meant 24,070 people with Medicare saved nearly $15.2 million in filling 186,726 prescriptions last year. That averages out to each of these Nebraska seniors saving $630.47 in 2011.

Today’s report on prescription drug savings comes after HHS released new data on enrollment in Medicare Advantage yesterday.

Medicare Advantage is the name of private-sector health insurance plans serving citizens eligible for Medicare. Medicare recipients have the option of receiving benefits through one of many different private insurance plans, as opposed to through the traditional Medicare program.

Despite mischaracterizations that the health care reform law would damage the Medicare Advantage program, Medicare Advantage enrollment is up 10 percent across the country from last year and Medicare Advantage premiums are down 7 percent. Since the law took effect in 2010, enrollment in Medicare Advantage is up 17 percent and premiums have fallen 16 percent.

In Nebraska, 34,239 seniors and people with disabilities are now enrolled in Medicare Advantage, up more than 13 percent from this point last year. Medicare Advantage premiums in Nebraska in 2012 average $13.79 per month, down from $14.40 per month last year.

Over time, the health care reform law is gradually reducing the subsidies Medicare pays to the private Medicare Advantage plans. In 2012, the health care reform law establishes bonus payments and other incentives for the private Medicare Advantage plans to increase the quality of their offerings to consumers.

“The facts are showing that health care reform is making Medicare work better for seniors and making private health insurance more valuable for all Nebraskans,” Nelson said.

“I often hear from seniors who appreciate the improved benefits for Medicare recipients and from other Nebraskans who are grateful children can now stay on their parents’ policies until their 26th birthdays and insurance companies are being prevented from rejecting people with pre-existing conditions.

“This is why I continue to work to improve the health care reform law while protecting the positive changes it has already made. We should not go backwards.”

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