THE HEALTH CARE BILL IS GOOD FOR SENIORS

This article by Emily Brandon in U.S. News & World Report describes 5 areas of improvement.

Free preventative care. Patient cost-sharing for preventive services such as cancer screenings will be eliminated on Jan. 1, 2011 for Medicare beneficiaries. Government payments to doctors for preventative services will be increased. Coverage of an annual wellness visit that includes a comprehensive health-risk assessment and a personalized prevention plan will also be added to the services covered by Medicare.

Prescription drug rebate. The new legislation provides a $250 rebate to Medicare beneficiaries who reach the Part D coverage gap in 2010. "More than 3 million people with Medicare have spending in the donut hole and those seniors will see an immediate reduction in their out-of-pocket costs," says Tricia Neuman, director of the Medicare Policy Project at the Kaiser Family Foundation.

Donut filling. The donut hole will be gradually filled in before completely closing in 2020. Beginning in 2011, pharmaceutical manufacturers will be required to provide a 50 percent discount on brand-name prescriptions in the Medicare Part D coverage gap and in 2013, federal subsidies for generic prescriptions will also be phased in.

High-income retirees pay more. High-income retirees already pay higher Medicare Part B premiums than other Medicare recipients. These income thresholds typically increase each year, but the new legislation freezes the income thresholds from 2011 through 2019 at 2010 levels. "They are freezing the income threshold so, given inflation, it will start to affect more people over time," says Hoadley. Medicare Part D will now also charge high-income beneficiaries higher premiums.

Early retiree coverage. The health bill creates a temporary reinsurance program for employers that provide retiree health insurance coverage to former employees age 55 and older who are not yet eligible for Medicare.