The Affordable Care Act, signed by the President earlier this year, provides a $250 rebate to Medicare Part D recipients whose prescription drug expenses fall into the “doughnut hole”. This rebate is a non-taxable, one-time rebate for 2010 available to those who do not already receive assistance under the Medicare Extra Help program. Under Medicare prescription drug coverage (also known as Medicare Part D), prescription drug expenses below $2,830 and above $4,550 are covered by Medicare coinsurance. Amounts between $2,830 and $4,550 are not covered and must be paid 100 percent by the Medicare recipient. This gap in coverage is known as the “doughnut hole”.
The rebate checks will be sent to Medicare recipients automatically beginning in mid-June as their prescription drug expenses exceed $2,830. You can check your Explanation of Benefits statements to see if you have reached the $2,830 threshold. If so, you should receive a rebate check within 45 days after the program begins. Remember, this should happen automatically. Therefore, you do not need to provide any information or fill out any forms. Be cautious of anyone calling you to ask for personal information regarding this rebate.
If you believe that you qualify for the rebate and you do not receive it, contact Medicare at 1-800-MEDICARE (1-800-633-4227). For more information on Medicare Part D coverage and the rebate, visit the following Medicare web site links:
Medicare Part D Rebate: http://www.medicare.gov/Publications/Pubs/pdf/11464.pdf?Language=English
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