2. In the first full year after the Patient Protection
and Affordable Care Act (ACA) took effect, there
has been much interest in its impact on out-of-
pocket spending on prescription drugs. And
reviews have been mixed.
3. Costs Decline for Many
As a whole, individuals did pay less for their
needed medications last year. This decline has
been noted as the first on record, and it was due
in large part to the new coverage gap
(“doughnut hole”) subsidy that was created for
seniors who participate in Medicare’s Part D
prescription drug plan.
4. In fact, these Medicare Part D plan participants
saw their drug-related copayments decrease by
more than $2.00, from an average amount in
2010 of nearly $26.00 to an average cost of
$23.31 in 2011.
5. And in total, the 3.5 million people enrolled in
the Medicare program saved more than $2
billion on prescription drugs in the past year. As
of early 2012, approximately 100,000 people
have also received close to $92 million in
prescription drug discounts.
6. Future Costs May Drop
Because of this, future costs to the government
could also be lowered. One reason for this is that
when seniors are able to take their needed
medications, they are less likely to require
hospitalization and other costly medical treatment.
This is especially the case for those with chronic
ailments such as diabetes and heart disease.
7. Yet while overall nationwide drug spending was
down in 2011, thanks in large part to the
provisions in the ACA, prescription drug costs for
those aged 19 to 25 actually increased.
Still, many people believe that prescription drug
cost savings are among the first tangible
benefits of the new healthcare reform.
8. Other Changes in 2014
Other healthcare-related changes that are part
of the ACA – including the guarantee that all
Americans may obtain health insurance
coverage – are slated to go into effect in 2014.
