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March 2010

  • You will receive a $250 rebate for prescription drugs if you incur cost exceeding $2,700 worth of coverage.  (This is to cover the gap in Medicare Part D called the doughnut hole)
  • Does not cut guaranteed Medicare benefits
  • Ensures Medicare remains financially solvent now and for years to come


  • You will receive a 50% discount on brand-name drugs.  (Medicare’s doughnut hole will be completely closed by 2020 by phasing in additional discounts on brand-name and generic drugs)
  • Co‐payments will be eliminated for annual check-ups, preventive services and screening—such as mammograms and colonoscopies—and exempts these services from deductibles. 
  • Investments in training more primary care providers, giving you greater access to doctors than you have today
  • Stronger incentives for hospitals to reduce avoidable and harmful readmissions, cut down medical errors and prevent health care acquired infections that occur too frequently
  • Annual wellness visits allow you take steps to stay healthy


  • The government would begin to cut subsidies to Medicare Advantage plans, which cost more on average than traditional Medicare.  The Medicare Advantage plans would also be required to spend at least 85% of their revenue from premiums and subsidies on medical claims.
  • Medicare Advantage plans that meet certain quality standards will receive bonuses, creating an incentive to still provide quality care.  
  • Medicare Advantage plans cannot reduce basic, guaranteed Medicare benefits, but some extras—such as free eyeglasses and gym memberships—will likely be paired down. 


  • New payment reform pilot projects within Medicare to develop and evaluate bundled payments, which create a financial incentive for providers to be more efficient and avoid wasteful, ineffective treatments.


  • By this time, the doughnut hole is expected to close.  You would then pay 25% of the total cost of prescription drugs.

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