Federal health reform has led to more than 1 million Medicare beneficiaries receiving prescription drug cost relief, according to U.S. Department of Health and Human Services Secretary Kathleen Sebelius.

Kathleen Sebelius

As part of the Patient Protection and Affordable Care Act’s step-by-step efforts to close the Medicare Part D prescription drug coverage gap, eligible beneficiaries who fall in this “donut hole” this year are mailed a one-time, tax-free $250 rebate check.

More than a quarter of the 4 million checks Medicare expects to distribute have been received by eligible Medicare beneficiaries.

“Many seniors and people with disabilities on Medicare face extraordinary prescription drug costs, and too often stop following the drug regimens that their doctors have recommended as a result,” Sebelius said in a statement. “These checks will make a difference in helping seniors continue to get the medications they need, and are one of many ways that the Affordable Care Act is helping seniors.”

Nationwide, 1 million Medicare beneficiaries have already been mailed their rebates and more beneficiaries will be receiving checks in the coming months as they enter the coverage gap. Eligible beneficiaries receive these checks automatically in the mail when they reach the donut hole, and they don’t have to sign-up to be eligible for the rebates.

Rebate checks will help people with their drug costs this year. Next year, those who fall into the donut hole will receive a 50% discount on covered brand name medications while in the donut hole. Every year, the amount Medicare beneficiaries pay in cost sharing will decrease markedly until the coverage gap is closed.