3.4 Million Seniors Hit Medicare 'Doughnut Hole'

In 2007, about 3.4 million Americans enrolled in the Medicare Part D drug plan reached a gap in their prescription coverage known as the "doughnut hole," leading some of them to stop taking prescribed drugs, says a Kaiser Family Foundation study released Thursday.

The analysis of data found that 26 percent of Part D enrollees who filled any prescriptions in 2007 reached the coverage gap. This includes 22 percent who were stuck in the gap for the remainder of the year and 4 percent who eventually received catastrophic coverage.

When they applied this estimate to the all Part D enrollees, the study authors concluded that last year about 3.4 million beneficiaries (14 percent of all Part D enrollees) reached the coverage gap and faced paying full cost for their prescriptions.

READ MORE @ FORBES

Mental Health Costs to Drop After Override of Medicare Veto - Medicare patients' copays for psychiatric care will fall from 50% to 20% by 2014

There's some little-noticed good news for patients in the Medicare Improvements for Patients and Providers Act of 2008 that became law with Congress's override of President Bush's veto on Tuesday: Medicare beneficiaries in need of mental health services will soon face lower coinsurance payments and will have improved access to certain medications.

"We're going to save lives with this bill," says Nada Stotland, president of the American Psychiatric Association. The new law reduces the out-of-pocket cost for outpatient mental health services from the current 50 percent coinsurance payment to a 20 percent copay—matching the copay required for other types of medical care—by the year 2014. The reduction in beneficiaries' out-of-pocket costs will be phased in. Medicare recipients will continue to pay a 50 percent copay until 2010; in 2010 and 2011, they'll pay 45 percent; in 2012, 40 percent; in 2013, 35 percent; and in 2014, they'll have a 20 percent copay.

READ MORE @ U.S. NEWS & WORLD REPORT