Alaska has third highest prescription drug discount

The bitterly contested Patient Protection and Affordable Care Act, a.k.a. Obamacare, passed last year included provisions designed to close the Medicare Part D "donut hole" by the year 2020. Right now, Part D beneficiaries pay the first $295 out of pocket. From $295 to $2,700 they pay 25 percent and Medicare covers the remaining 75 percent. From $2,700 to $6,154 they're in the donut hole and all costs are out of pocket. After that Medicare kicks in again and only 5 percent is out of pocket. Got it?

Anyway, Alaska has about 65,000 Medicare beneficiaries, most age 65 plus and many on fixed incomes that can really feel the pinch in the donut hole. Starting January 1, 2011, people who hit the donut hole were eligible for a 50 percent discount on brand-name prescription drugs. 886 Alaskans have benefited from the discount, saving over half a million dollars for an average discount of $608.75. Only Delaware and Vermont residents received a higher average discount, $636.44 and $618.14 respectively.