WASHINGTON, DC - U.S. Senator Jack Reed (D-RI) today announced the federal government will begin sending out $250 rebate checks this Thursday, June 10, to those Rhode Island seniors who reach the prescription drug coverage gap, also known as the "doughnut hole," in the Medicare Part D program.

These checks are expected to help provide needed relief to about 15,100 Rhode Island seniors by helping to cover the cost of their prescriptions. As many as 4 million elderly and disabled Medicare beneficiaries could receive the tax-free, one-time-only benefit by the end of the year.

"The first batch of rebates is set to go out this week, and will be sent out throughout the year, to help provide financial relief to thousands of seniors on fixed incomes who have already fallen into the doughnut hole," said Reed, a member of the Health, Education, Labor and Pensions (HELP) Committee. "Closing the doughnut hole is a critical component of health insurance reform that will save Rhode Islanders millions of dollars and help seniors lead healthier lives."

In previous years, seniors fell into the coverage gap when they and their drug plan spent more than $2,830 on needed medication. At that point, they must pay the full cost of their drugs. After they spend another $3,610, they emerge from the hole and pay only 5% of their medication costs.

The Affordable Care Act, which Senator Reed supported and President Obama signed into law, provides for one-time, automatic $250 rebate checks to all seniors who hit the prescription drug coverage gap in 2010. In 2011 people affected by the gap in coverage for prescription drugs will receive a 50 percent discount on brand-name and generic drugs. By 2020, the "doughnut hole" shortfall will be eliminated entirely.

Reed also noted that seniors do not need to fill out any paperwork to receive their rebate checks and warned citizens to watch out for scam artists: "The checks will be mailed or deposited automatically. Rhode Islanders do not need to fill out any paperwork or provide their personal financial information. If someone calls you up or knocks on your door asking about these payments, report it to the authorities or call my office at 943-3100. We want to ensure that everyone gets the help they need and no one is taken advantage of."

People wishing to report anything suspicious about possible scams may call their local police department's senior advocate or contact the Centers for Medicare and Medicaid Services (CMS) at 1-800-MEDICARE. To find more information, visit: http://www.medicare.gov.

Reed also urged Rhode Islanders to participate in today's national tele-town hall meeting on health insurance reform with President Obama. Today at 11:40 a.m. the President will discuss how the new health insurance reform law will benefit seniors and take questions directly from people around the country.

Rhode Islanders may watch the event on their computer via http://www.whitehouse.gov/live, or you can call into the town hall by dialing: 1-800-837-1935 and entering the code: 80272058.

"With over 177,000 Rhode Islanders benefitting from Medicare, I would encourage you to call in and learn more about how this new law ensures access to free wellness visits, preventative care services, and less expensive prescription medicine," concluded Reed.

Callers will be selected randomly to ask the President questions.