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Reply #20: Please elaborate on your donut hole theory. [View All]

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Home » Discuss » General Discussion: Presidency Donate to DU
Warren Stupidity Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-15-10 03:27 PM
Response to Reply #11
20. Please elaborate on your donut hole theory.
The government indeed sent checks to medicare plan D recipients. How exactly did that lower medical costs? It seems instead, if it had any effect on costs, it would be an upward effect due to increased demand from senior citizens who have in the past simply gone without the drugs they need. My guess is this had no measurable effect on prices.

The 'loophole' part of the Healthcare Prevention Industry Reform Act does not take effect until 2011, when people in the donut hole get a 50% discount on name brand drugs from all manufacturers participating in plan D. How is that lowering prices in 2010?
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