Due in large part to strong competitive bidding by health and prescription drug plans and beneficiaries’ choices, the Centers for Medicare & Medicaid Services (CMS) anticipates that the actual average premium paid by beneficiaries for standard Part D coverage in 2008 will be roughly $25, compared to $22 in 2007. This is nearly 40% lower than originally projected.
“Competition and smart choices have been two important factors in holding down the cost of the Medicare drug benefit. The Part D program is serving beneficiaries at a far lower cost than originally expected,” said CMS Acting Deputy Administrator Herb B. Kuhn. Bids from insurance companies that want to participate in the program are “well below projections” because prescription drug costs are not rising as fast as expected, and because of increased use of generic drugs, better negotiations with the drug companies, and strong competition.
Further, the vast majority of people who are enrolled in a Part D plan will have access to coverage that will cost them the same or less than their coverage in 2007 if they enroll in a lower-cost Part D plan in their region. Those on a Medicare Advantage plan will also benefit from lower prescription drug premiums. Note however that it is important to compare your coverage options for 2008 based on the overall cost, the type of coverage, and convenience in order to select the plan that best meets your needs.
Questions about Medicare? Email to info@medicarebenefits.com
Source: http://www.medicarebenefits.com/what_s_new_in_medicare_part_D-Premiums.html
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