The participants in Medicare Part D prescription –drug plans should check out their mailbox as the US Department of Health and Human Services started sending out $250 rebate checks to the clients since last week.

This one time rebate is a part of the health care reform bill, which was signed into law by president Obama earlier this year. This is applicable to part D participants who fall into the drug coverage gap. This rebate will help lessen the costs that people bear during the gap. 

This gap comes in when a person’s yearly prescription drug cost reaches a set dollar amount. For 2010 it is fixed at $2,830. If the drug cost of a patient is this amount then 75% of this amount is covered by the insurance. The insured then tries to get 100% of the medication costs until catastrophic coverage comes in, when the amount goes up to $6,440 for the year.

Rebate checks are sent within 45 days of Medicare Part D participants hitting the coverage gap. The checks get mailed automatically. One does not need to fill a form for that. 

To help close the gap further in 2011 people in the doughnut hole or the coverage gap will get discounts on drugs, which will increase till 2020 when the gap will not be there anymore and the standard coverage of 75% will be applicable.

CMS is spending $1 million on radio, TV, and print messages to warn the elderly people to protect themselves from potential dangers of scam and fraud while claiming Medicare benefits.

When ever changes take place in Medicare benefits there are people who try to take advantage of senior elderly people.

To find out whether you are eligible for the rebate you can go to medicare.gov or dial 1-800-633-4227