Healthcare reform helps close coverage gap in Medicare prescription drug benefits

WASHINGTON - This summer, the government began mailing out checks for $250 to thousands of seniors to help close the coverage gap in Medicare prescription drug benefits. The fourth round of checks will be sent out at the end of August.

"These are tough economic times. And no one knows this more than retirees and older residents," said Congressman Rangel. "Many of my constituents, after putting in years of hard work, must stretch every dollar from retirement savings, and Social Security just to eat, and keep a roof over their heads."

One of the largest expenses and threats to financial security are prescription drugs needed to stay in good health.  The 'donut hole' coverage gap is the period in the prescription drug benefit (once the prescription drug costs exceed $2,830) in which the beneficiary pays 100 percent of the cost of their drugs until they hit the catastrophic coverage threshold. Under the new law, seniors who fall in this gap in 2010 will receive this one-time tax-free $250 rebate check.

So far, 63,217 New Yorkers have received checks, providing the extra help they need to defray costs and remain economically afloat. Medicare recipients don’t have to do anything to get the $250 check – once their drug costs for the year hit $2,830 the one-time check will be issued automatically.

However, Congressman Rangel warns seniors to be on the lookout for fraud: "Please keep in mind:  Don't be fooled by scam artists who know about these payments and may ask for your private information, such as your Social Security number or bank account number."

Those who haven't received a check but believe they should are advised to contact the Department of Health and Human Services by calling 1-800-MEDICARE, or to visit their web site at  www.HealthCare.gov. Constituents seeking further assistance can call the Congressman's New York or Washington, DC offices.

The legislation that resulted in these checks was initiated by the House Ways and Means Committee under Congressman Rangel's leadership.

"We won't stop fighting for our retirees and older constituents, especially after they have given us so much for so long." said Rangel.