Don't Panic - Medicare Part D Drug Discounts are Still Happening

Vice President Joe Biden and HHS Secretary Kathleen Sebelius are pooh-poohing a rumor that drug makers will be hiking their prices in the coming months to offset the new healthcare law's plan to offer a 50% discount to those who fall into the Medicare Part D "doughnut hole."

During a call with senior citizens on Thursday, Biden and Sebelius stressed that as part of the healthcare law, the government struck a deal with pharmaceutical companies to begin lowering the price of drugs, effective 2011. The 50 percent discount on brand-name prescription drugs is the second phase of the Obama administration's plan to close to doughnut hole by 2020.

Sebelius added that the savings on drugs will continue even after the gap is closed.

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