Two years ago this spring, the Affordable Care Act (ACA) was passed into law, bringing real benefits to the tens of millions of Americans who have Medicare. In 2011, as a result of the ACA:
- almost 3.6 million Medicare beneficiaries saved more than $2.1 billion on prescription drugs in the coverage gap thanks to discounts on brand name and generic medications;
- 25.7 million beneficiaries in Original Medicare accessed preventive services, including mammograms, prostate cancer screenings, and the annual wellness visit, at no out-of-pocket cost;
- almost $4.1 billion was recovered in improper Medicare payments through fraud prevention efforts;
- payments to Medicare Advantage plans were brought more in line with costs under Original Medicare and premiums went down on average, benefits remained stable and plans did not leave the market; and
- the financial health of the Medicare program has been improved, putting Medicare in a stronger position to serve older adults and people with disabilities in the future.
“In the second year of its implementation, the ACA has improved access to health care for millions of people with Medicare,” said Joe Baker, President of the Medicare Rights Center. “Medicare beneficiaries are receiving preventive services at no cost as well as cheaper prescription drugs in the coverage gap, and while the immediate benefits of health reform are encouraging, there is still a lot to look forward to as the law is being implemented.”
Future improvements that will occur as ACA implementation continues include:
- closure of the Part D coverage gap by 2020;
- ensuring that Medicare Advantage plans use at least 85% of revenues on medical services for plan members starting in 2014;
- gradual further reductions in over payments to Medicare private insurance companies to bring them more in line with costs under Original Medicare; and
- extending the solvency of the Medicare Hospital Trust Fund for an additional 8 years, until 2024
For additional information see Medicare Rights Center’s new fact sheet: “The Affordable Care Act: Before and After”
