The Impact of the Affordable Care Act on Medicare

The botched rollout of the federal insurance exchange and the stream of media coverage surrounding the Affordable Care Act have left many Americans feeling overwhelmed and confused about the impact of the healthcare reform law.

A study commissioned by Express Scripts found that Medicare-eligible seniors have significant misconceptions about the Affordable Care Act and its effect on their existing Medicare coverage.

Of the seniors polled, 20% thought that they were eligible for an insurance plan through an exchange, even though enrollment ends at age 64, and 17% mistakenly believed that the health insurance exchange’s plans could replace the Medicare program.

The Affordable Care Act, however, does impact Medicare in two important ways. First of all, it will end the coverage gap by 2020. Seniors in the coverage gap pay a higher portion of their medication costs because their prescription drug costs are over the initial coverage limit but under the catastrophic coverage threshold. 

Many preventative services are also now covered by Medicare Part B, including cancer screenings and bone mass measurements. Medicare Part D will cover vaccines necessary to prevent illnesses that are not covered under Part A or B.

Medicare open enrollment ends December 7, 2013, so it is vitally important to understand the options available to you. If you have any questions about Medicare coverage or need to enroll in a plan, visit http://medicare.gov/.