The Part D coverage gap – which requires beneficiaries to pay the full cost of their medications for a period – was already on track to close by 2020 thanks to the Affordable Care Act (ACA). The Bipartisan Budget Act of 2018 speeds up this process by a year. In 2019, beneficiaries who fall into the coverage gap will only pay 25 percent of the cost of their prescription drugs until they reach their annual out-of-pocket limit.
Additionally, the resolution increases the percentage that drug manufacturers must discount prescription costs. As a result, drug manufacturers will now pick up more of beneficiaries’ out-of-pocket costs.
By closing the gap a year early, the government expects to save money since beneficiaries will now take longer to reach their annual out-of-pocket spending limit.
If you are new to Medicare or are currently on a Part D drug plan and want to know how this will affect you, please give me a call at 803-851-0219.