Close the "donut hole" in Medicare prescription drug plan

Health care bill would close Medicare doughnut hole

Updated: Wednesday, July 15th, 2009 | By Angie Drobnic Holan

After months of talking about health care reform, the U.S. House of Representatives introduced major legislation to overhaul the nation's health care system. House Democrats unveiled the 1,000-plus-page bill, called America's Affordable Health Choices Act of 2009, on July 14, and it includes most of President Barack Obama's key proposals on health reform.

One of Obama's campaign pledges was to close the "doughnut hole" in the Medicare Part D Prescription Drug Program, a coverage gap that affects some seniors who have to pay for drugs that might otherwise be covered. The health care bill aims to slowly eliminate the gap, beginning with a $500 reduction in 2011 and completing phase-out by 2023. Under the House bill, that move would be paid for by requiring drug manufacturers to pay new rebates involving the Medicaid program.

We should be clear that there's a long way to go — maybe months — before this bill becomes law. It has to get through the Senate, where many an ambitious House bill has seen its hopes dashed.

Nevertheless, the bill marks significant, measurable progress on Obama's promise, and we rate it In the Works.

Sources:

Thomas, HR 3200 , introduced July 14, 2009

U.S. House of Representatives Energy and Commerce Committee, House Democrats Introduce Bill to Provide Quality, Affordable Health Care for All Americans , July 14, 2009