President Barack Obama announced on Monday that he plans on closing the gap in prescription drug coverage for senior citizens. The way that Medicare works now is that once a senior’s prescription drug costs reach $2,700, Medicare stops paying. Then once costs top $6,100, Medicare starts paying again. “It’s a reform that will make prescription drugs more affordable for millions of seniors … and restore a measure of fairness to Medicare Part D,” Obama said. Under the agreement, prescription drug costs would be cut in half for about 26 million seniors who fall into the so-called Medicare doughnut hole. Some people, however, are not so hopeful for this plan’s outcomes. “It signifies pretty much nothing,” said Michael Cannon, with the Cato Institute. “The pharmaceutical industry isn’t going to give out those discounts just for free. They’re expecting to get more customers. They’re expecting to make more money off this deal not less money,” Whatever the case may be, even if the pharmaceutical industry’s goals may be financial, it does not change the fact that this plan will help millions of seniors throughout the country pay for their prescriptions. Many seniors sufffer from the inability to pay for prescriptions under the doughnut hole and some are forced to drop their insurance. Sure, the pharameceutical companies may gain money through all of this, but as long as more seniors are covered with affordable prescription drug coverage, this plan is a success.
President Barack Obama announced on Monday that he plans on closing the gap in prescription drug coverage for senior citizens.