This week many people with Medicare will begin receiving a $250 check from the federal government
. This is one time rebate and will be sent to anyone who falls into the Medicare part D coverage gap (also known as the donut hole).
According to Medicare, if you qualify to receive a rebate check, the process will work for you as follows
You don't have to do a thing. As soon as you enter the gap your part D plan will inform Medicare and they will cut you a check.
You will get your check by regular mail in an envelope from the "Department of Health and Human Services," marked Medicare part D on the outside.
The first checks go out on June 10th on then in monthly intervals thereafter.
If you're in the gap and don't receive your check, call Medicare at (800) 633-4227. If you've recently moved call Social Security at (800) 772-1213 to make certain they have your correct address on file.
Everyone who falls into the donut hole will get a check. The one exception is people with limited incomes qualifying for extra help.
You qualify for the rebate as soon as you go into the donut hole regardless of how much you spend while in it.
The $250 rebate is tax free and does not add to the amount you must spend to get out of the gap.
In 2011, people in the gap will see a 50% discount on brand name and biologic drugs, and a 7% discount on generics. After next year the discounts will continue to grow. And by 2020 no one will pay more than 25% of the cost of any drugs in what is now known as the donut hole.