Jeff Bingaman United States Senator from New Mexico

U.S. SENATOR Jeff Bingaman

Thursday, June 10, 2010

Contact Senator Bingaman's Office:

Jude McCartin
Maria Najera
703 Hart Building
United States Senate
Washington, DC 20510
(202) 224-5521

Bingaman: Seniors to Receive $250 Checks to Help Close Prescription Drugs Coverage Gap

WASHINGTON – U.S. Senator Jeff Bingaman today participated in a Capitol Hill news conference to announce that millions of American seniors will soon be receiving $250 checks to help defray the cost of their prescriptions.  Hear Bingaman's remarks.

Starting this week, $250 checks are being sent to Americans enrolled in the Medicare Part D prescription drug program who have reached the so-called "donut hole" – the period of time when Medicare recipients are paying prescription drug premiums but are not receiving benefits.  Many seniors remain in the donut hole the rest of the year, but others eventually start receiving prescription drug benefits again.

About 300,000 New Mexicans are Medicare recipients, and roughly 25,000 of them hit the donut hole at some point last year.

"The 'donut hole' was a major flaw in Medicare Part D.  Over the next decade, the new health insurance law will close the gap entirely, but in the meantime these $250 checks are being sent to help seniors to cover the cost of their life-saving prescriptions," Bingaman said.

The $250 rebate check is tax-free and Medicare will automatically mail a check when the beneficiary reaches the "donut hole." Seniors should expect their check in the mail within 45 days or less of hitting the coverage gap.

Next year, seniors will get even more help.  Once they hit the donut hole, the makers of brand name prescription medications will be required to offer prescriptions at a 50 percent discount.  For seniors taking generic medications, the federal government also will begin providing assistance in 2013.

"Helping seniors defray the cost prescription medications is just one of the positive aspects of the new health insurance reform law.  In the coming months and years, New Mexicans will start seeing how this new law benefits them," Bingaman said.