By Ferdous Al-Faruque - 07/29/14 01:50 PM EDT
The Obama administration says cost-saving measures in ObamaCare have reduced the burden of prescription drug coverage and saved seniors and people with disabilities $11.5 billion since 2010.
According to the Department of Health and Human Services (HHS), 8.2 million seniors and people with disabilities saved an average of $1,407 since 2010 through ObamaCare rebates and discounts to close the prescription drug “donut hole.”
Medicare prescription drug plans have a limit on how much they pay for medication. Once that limit is reached recipients are required to pay for their drug costs out of pocket before catastrophic coverage can kick in. This gap in prescription drug coverage is known as the “donut hole."
Under Obamacare, recipients in the donut hole get a rebate or discount from the government to help them save on prescription drug costs. The administration says it aims to increase how much it gives in rebates and discounts to close the donut holes by 2020.
The Department of Health and Human Services also released a chart Tuesday outlining how much Medicare beneficiaries are saving from the ObamaCare donut hole discounts state by state.
The announcement comes a day after the administration touted that Affordable Care Act measures to reduce Medicare costs had added another four years to the entitlement program's solvency.