Amy Klobuchar Releases New Plan to Close Medicare Part D ‘Doughnut Hole’

09/22/2006

U.S. Senate candidate and County Attorney Amy Klobuchar today released a plan to fill the “doughnut hole” gap in the current Medicare Part D prescription drug benefit, potentially helping as many as seven million middle-class seniors afford their prescription drugs. Klobuchar has proposed a comprehensive package of healthcare and Medicare reforms, including negotiated prices for prescription drugs, re-importation, and a fair reimbursement system for Minnesota.

“It’s time to keep our promise to seniors by closing the doughnut hole and filling the gaps in prescription drug coverage in Medicare Part D,” Klobuchar said. “We can start to pay for this by eliminating tax giveaways for pharmaceutical companies’ advertising and marketing.”

Currently, drug companies take a tax write-off for advertising and marketing activities. Healthcare analysts estimate the value of these giveaways could be anywhere from $13 to $15 billion in 2007[1].  Klobuchar’s plan estimates the cost of closing the doughnut hole to be between $12 to $16 billion.

“It doesn’t make sense to force our seniors to forego essential medicines as a result of the doughnut hole,” Klobuchar said. “If they end up in the emergency room, that could actually cost Medicare more money in the long-run.”

Currently, seniors’ prescription drug costs are covered by Medicare Part D up to their first $2,250. After that mark, seniors are responsible for the entire cost of their drugs until the costs reach $5,100—the level where Part D coverage resumes. This gap in coverage is known as the “doughnut hole.”