Drug Makers to Reduce Medicare Drug Costs

WASHINGTON—Reuters is reporting that drug manufacturers agreed to a 50-percent prescription drug discount for elderly and disabled Americans in the Medicare health insurance program that face a gap in coverage after their drug costs reach a certain level, known as the "doughnut hole.”

According to Reuters, the 10-year deal worth an estimated $80 million was negotiated between the Pharmaceutical Research and Manufacturers of America and the Senate Finance Committee, which is one of several congressional panels drafting healthcare reform legislation.