President Barack Obama lauded an initiative by the drug industry to offer discounted medication to seniors who reach a gap in coverage under Medicare often known as the “doughnut hole.”
Under the deal negotiated by Senate Finance Committee Chairman Max Baucus (D-Mont.), the White House and the Pharmaceutical Research and Manufacturers of America, Medicare beneficiaries who have outspent their allowed coverage would receive a discount of at least 50% from the negotiated price their plans pay.
“This gap in coverage has been placing a crushing burden on many older Americans who live on fixed incomes and can’t afford thousands of dollars in out-of-pocket expenses.” Obama said.