Durbin: $1.2 Billion in Prescription Drug Savings for Illinois Seniors in Jeopardy

Press Release

U.S. Senator Dick Durbin (D-IL) released county by county numbers showing that the newly implemented Medicare "donut hole" fix will put over $1.2 billion back in the hands of Illinois seniors over the next ten years. Across the country, seniors who have high prescription drug spending will save as much as $12,300 over the next ten years and seniors with low drug costs will save an average of $2,400 over ten years. This week, a vote expected in the U.S. House of Representatives to repeal provisions in the health care reform law puts that funding for 133,854 Illinois Medicare beneficiaries in jeopardy.

"The health reform law is already making a difference in the lives of millions in our state," said Durbin. "As of January 1, Medicare beneficiaries trapped in the "donut hole" began receiving a 50 percent discount on all brand name drugs. This discount will gradually increase until 2020 when the donut hole is filled completely. Without this provision of the health reform law, the burden of high prescription drug costs would hurt thousands Medicare beneficiaries across Illinois. No one should have to choose between their health and paying for food, bills, and other basic necessities, especially our seniors."

In the Medicare Part D program that was established in 2003, once an initial coverage limit is reached, beneficiaries have to absorb 100 percent of their drug costs until catastrophic coverage kicks in. That means that approximately 3.4 million seniors nationwide with the heaviest reliance on prescription drugs faced the prospect of paying up to $4,000 out of pocket before they qualified for further assistance from Medicare.

In a January 3 letter, Durbin and members of the Senate Democratic Leadership urged Speaker of the House John Boehner to protect seniors by not repealing a new fix to Medicare's "donut hole" and warned they would block any health care repeal effort that does so. They wrote: "We urge you to consider the unintended consequences that the law's repeal would have on a number of popular consumer protections that help middle class Americans. The "donut hole' fix is just one measure that would be threatened by a repeal effort. Taking this benefit away from seniors would be irresponsible and reckless at a time when it is becoming harder and harder for seniors to afford a healthy retirement."

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