AP: Health law cuts seniors' doughnut hole expenses 40%

Nov 28 2011

The Associated Press/The Boston Globe: AP Newsbreak: Medicare's Drug Coverage Gap Shrinks
 Medicare's prescription coverage gap is getting noticeably smaller and easier to manage this year for millions of older and disabled people with high drug costs. The "doughnut hole," an anxiety-inducing catch in an otherwise popular benefit, will shrink about 40 percent for those unlucky enough to land in it, according to new Medicare figures provided in response to a request from The Associated Press. The average beneficiary who falls into the coverage gap would have spent $1,504 this year on prescriptions. But thanks to discounts and other provisions in President Barack Obama's health care overhaul law, that cost fell to $901, according to Medicare's Office of the Actuary, which handles economic estimates (Alonso-Zaldivar, 11/27).

Meanwhile, one magazine is finding a change of heart for many seniors.

U.S. News & World Report: Workers Pushing Back Their Retirement Age
Some people are planning to retire when they reach a certain age, such as when they become eligible for Social Security or Medicare ... However, the survey found that most middle class households aren't even close to hitting their retirement savings goal. ... Many of these middle income households (53 percent) say they would need to significantly cut back on spending in order to save more for retirement. A variety of financial concerns including monthly bills, health care, and education are generally given priority above saving for retirement (11/23).