Thursday, March 11, 2010

One Percent, Day Fifteen: Does your grandma have an extra $2,000 to spare?

Click here for an explanation behind these posts.

In the face of polls showing the health care bill isn't as popular as people thought -- what polls are those, I wonder? I haven't seen any-- Obama is pointing out that people don't know what's in the bill. Which is why I'm still explaining it, step by step.

Another thing Obama's plan would do is this: It'll Close The Medicare Drug Payment Gap. Commonly called the "donut hole," the gap is in the Medicare drug benefit, which pays for the first $2,830 in subscriptions, but then stops paying for prescriptions until the senior on Medicare hits $4,550 in out-of-pocket costs.

So if your grandma needs more than $2,830 in prescriptions per year, current law requires that she'll begin paying out of pocket at that point -- and will continue until she shells out enough to hit the next phase.

What that means in practical terms is that if you're not very sick, Medicare will pay your all costs. If you're very sick, Medicare will pay some of your costs -- but only after you pay some.

Helluva way to run a system, isn't it? Who would be against plugging that hole?

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