Sen. Bill Nelson, D-Fla., has introduced the Medicare Prescription Drug Gap Reduction Act of 2007, which would authorize the Secretary of Health and Human Services to negotiate prescription drug prices for Medicare beneficiaries. His bill aims to generate savings that would be used to plug the “doughnut hole” that affects more than one-quarter of Medicare Part D beneficiaries. The doughnut hole occurs between the time that seniors have incurred $2,400 in prescription expenses until they reach $5,451 in expenses. During that time they receive no prescription drug coverage even though they continue to pay premiums.
