On the 48th anniversary of the signing of Medicare and Medicaid into law, new information released today by the Department of Health and Human Services (HHS) shows a strong Medicare program.

In California, people with Medicare have saved $573,726,255 on prescription drugs as a result of the Affordable Care Act.

Nationally, these savings average $1,061 per beneficiary in drug costs while a beneficiary is in “donut hole” coverage gap that the law closes over time.

Since the law was enacted, over 6.6 million people with Medicare nationally have saved over $7 billion on drugs.

In addition, 1,375,765 people with traditional Medicare in California took advantage of at least one free preventive service in the first six months of 2013.

This news comes on the heels of historically low levels of growth in Medicare spending. From 2010 to 2012, Medicare spending per beneficiary grew at 1.7 percent annually, more slowly than the average rate of growth in the Consumer Price Index, and substantially more slowly than the per capita rate of growth in the economy.

“Medicare is much stronger as a result of the health care law,” said HHS Secretary Kathleen Sebelius. “Spending has slowed to historic levels, as seniors are enjoying enhanced benefits and greater savings on drugs.”

Savings on prescription drugs

Because of the Affordable Care Act, out-of-pocket savings on medications for people with Medicare continue to grow.

In California, people with Medicare have saved $573,726,255 on prescription drugs in the Medicare Part D donut hole since the law was enacted. Nationally, over 6.6 million people with Medicare have saved over $7 billion, for an average of $1,061.

People with Medicare in the donut hole now receive discounts and some coverage when they purchase prescription drugs at a pharmacy or order them through the mail, until they reach the catastrophic coverage phase.

The Affordable Care Act gave those who reached the donut hole in 2010 a one-time $250 check, then began phasing in discounts and coverage for brand-name and generic prescription drugs beginning in 2011. The law will provide additional savings each year until the coverage gap is closed in 2020.

For more information on how the Affordable Care Act closes the donut hole, please visit: http://www.medicare.gov/part-d/costs/coverage-gap/part-d-coverage-gap.html .

Preventive services

By making certain preventive services available with no cost-sharing obligations, the Affordable Care Act is helping Americans take charge of their own health. Americans can now better afford to work with health care professionals to prevent disease, detect problems early when treatment works best, and monitor health conditions.

In Medicare, the Affordable Care Act eliminated coinsurance and the Part B deductible for recommended preventive services, including many cancer screenings and other important benefits.

For example, before the law’s passage, a person with Medicare could pay as much as $160 in cost-sharing for some colorectal cancer screenings. Today, that screening is free.

In California, 1,375,765 people with traditional Medicare took advantage of at least one free preventive service in the first six months of 2013. Nationally 16.5 million people with Medicare have taken advantage of at least one free preventive service in the first six months of 2013.