Maine People's Alliance - Medicare Part D "Doughnut Hole" Press Release

Concerned citizens pass out doughnut holes to raise awareness of Medicare Part D gap in coverage.

BANGOR/LEWISTON/PORTLAND—The Maine People's Alliance and concerned citizens gathered today, Monday, September 18, 2006, in front of CVS pharmacy in Portland (510 Congress Street) to raise awareness of the Medicare Part D gap in coverage known as the “doughnut hole.” Passing out actual doughnut holes, participants declared today “Doughnut Hole Day” in Maine!, drawing attention to the fact that this week marks the point when the average Medicare-eligible American will fall into the doughnut hole.

What is the Part D “Doughnut Hole”?
Under a typical Part D plan, there is no drug coverage for annual costs between $2,250 and $5,100. Seniors pay all their expenses out of pocket, even as they continue to pay monthly premiums to the drug plan!

"When I have to pay $27 a month to the insurance company to get a cash return of $8 it is absurd. I have to dish out $163 for my pills per month and they only pay the $8," says Anne St. Pierre of Lewiston in a read statement. “I used to get free prescription drugs before the Part D program came into effect. Now I'm in the doughnut hole and I don't know how I am going to get out."

This year, some 7 million Americans are expected to experience the “doughnut hole” coverage gap.

“This week has been identified as ‘National Donut Hole Week’ – the date the average Medicare-eligible American, including an unknown number of Mainers, will fall into the Part D donut hole trap,” said Jenny Rottmann, MPA Health Care organizer. “This unfortunate milestone is proof that Part D was written by and for the big drug and insurance companies. There’s no other reason this massive coverage gap exists in the first place. There’s no other reason why Medicare would be prohibited from negotiating lower prices with the drug companies. There’s no other reason why seniors are forbidden from getting a drug plan directly through Medicare. There’s no other reason why the private insurance plans are allowed to drop coverage for specific drugs at any time while seniors are locked into their plans.”

State leaders have lessened the impact of the Doughnut Hole in Maine. A bipartisan effort, led by Governor Baldacci, anticipated the devastating impact of the Donut Hole on Maine seniors, and by pitching in with state dollars, has found ways to lessen the impact of the “doughnut hole” for Maine’s lowest-income seniors when they reach the cut off. Nevertheless, action is required at the federal level to fix the fundamental flaws in the design of Part D. Legislation needs to be passed, such as the Tom Allen co-sponsored Medicare Prescription Drug Savings and Choice Act, that will create a prescription drug benefit directly under Medicare and allow Medicare to negotiate for lower drug prices. Savings realized could then be used to eliminate the doughnut hole gap in coverage.

Today’s doughnut-hole event is part of a national campaign kicked off by the Campaign for America’s Future and Americans United, the national partner of MPA, to pass out 69,000 doughnut holes—1 doughnut hole for every 100 seniors who are estimated to plummet into the Part D donut hole trap—and raise awareness about why the donut hole needs to be eliminated and why Congress must Fix Part D today.