Sitting on the edge of my seat waiting to hear what the outcome would be regarding the repeal and replace of the ACA. It was such a relief know the vote for repeal and replace was canceled and those on Medicare wouldn’t be hurt.
History of The Part D Prescription Plan
Originally, the Part D Plan was setup to have an annual deductible and once that had been met the government pays 75% of your prescriptions and you are responsible for 25% co-payment until you reach the limit on what the drug plan will cover for drugs, then you fell into the do-nut hole.
This became very expensive for people and they were required to pay 100% of the drug costs until they reached the catastrophic phase.
I know people who use the insulin pens and they are very expensive. Those prescriptions can put them in the “hole” within 4-5 months. Now try and purchase those pens at 100% cost and you are looking at about $400+/- per month for the next 5-8 months.
This is How The ACA Helps Medicare Part D
By the year 2020 there will be a standard 25% co-payment for brand-name drugs and 25% for generics when you reach the do-nut hole, thus closing the “hole”.
The percentage has been decreasing since the implementation of the ACA and in 2017 once you and your plan have spent $3,700 on covered drugs, you’re in the do-nut hole. If you reach the hole you will pay a 40% co-payment for brand-name drugs and 51% for generics.
The Reduction Schedule for The Next 4 Years
- 2017 — 40% for brand-names – 51% for generics
- 2018 — 35% for brand-names – 44% for generics
- 2019 — 30% for brand-names – 37 % for generics
- 2020 — 25% for brand-names – 25% for generics
Looking forward to 2020 when the do-nut hole will be closed!
The ACA protects Medicare and Medicaid and if the repeal and replace of the ACA went through, this is what would have happened:
- $880 billion in cuts to Medicaid
- $170 Billion in cuts to Medicare funding
- Medicare Part B premium increases
If you hear repeal and replace Obamacare, think of the Medicare loses that would affect you.