Two proposed bills aim to cut drug costs for retired Americans

Two proposed bills suggest ways to reduce the high cost of prescription drugs, primarily for the 44 million retired Americans who rely on Medicare health insurance.

High drug costs are a concern for many Americans, particularly for retired people who are more likely to take prescription drugs. Despite having Medicare insurance, they pay part of a prescription’s cost, called a co-pay. Drug costs have increased at double the rate of inflation, or more. Prices for some drugs are as much as seven times their cost in other industrialised countries. Surveys have shown that because of the cost some older Americans are not filling prescriptions, are cutting a dose in half, or skipping a dose.

Medicare beneficiaries can choose optional insurance (called a Plan D Medicare Prescription Drug plan) to help cover their prescription expenses. Until this year beneficiaries had a gap in coverage, called a donut hole, during which the beneficiary paid more for their drugs before reaching catastrophic coverage, …