Medicare premiums for drugs to increase
Some will see spike of 64% for plan
WASHINGTON — Robert Clark describes himself as a bit of a tightwad. So he is a little perplexed about the news from his Medicare drug plan. His monthly premium will rise from about $25 a month to about $41 a month next year. And his wife, June, will face the same increase.
Clark, of Cumming, Ga., emphasized he just wants to be treated fairly. “I don’t understand why it has to double,” he said.
While the increase falls short of a doubling, it’s clear the Clarks, as well as millions of other seniors and the disabled, face hefty premium increases next year for prescription drug coverage.
Among the top 10 drug plans in terms of enrollment, the average monthly premium will increase anywhere from 8 percent to 63.7 percent, according to an analysis from Avalere Health, a management consulting firm. At the same time, those plans are reducing the number of medicines that they will cover by about 9 percent.
The most popular plans will cover about 2,100 drugs, on average, a drop from slightly more than 2,300 drugs in 2008, Avalere found.
In short, the plans generally are asking Medicare beneficiaries to pay more for less during an increasingly difficult economic time.
“A number of factors are pushing plan pricing up,” said Dan Mendelson, president of Avalere. “Seniors are using more branded and generic drugs. Drug prices went up a little bit as well. But perhaps most important, a number of plans — notably Humana — concluded that they underpriced and are making up for lost time.”
A new drug benefit under Medicare kicked in at the beginning of 2006. All 44 million elderly and disabled beneficiaries can enroll in a private drug plan approved and heavily subsidized by the federal government.
But the government subsidy next year, $53.97 a month for the typical enrollee, covers only part of the costs.
Participants don’t have to stick with the same company, though. From Saturday through Dec. 31, they can choose prescription drug coverage from dozens of insurance plans operating in their state.
“I’m going to shop around,” Clark said. And federal officials urge seniors to follow his example, even though polling indicates that most won’t, in large measure because of widespread satisfaction with the program, referred to as Medicare Part D.
“Plans change. Some plans have increased their prices. But also you change, meaning the drugs that you’re taking, or your health status might be different, so it’s important you shop around and compare and get yourself in the right plan,” said Kerry Weems, acting administrator for the Centers for Medicare and Medicaid Services.
Medicare officials report that in every state, beneficiaries will have access to at least one prescription drug plan with premiums of less than $20 a month.
The Centers for Medicare and Medicaid Services include drug plans as well as plans that offer more comprehensive health benefits, called Medicare Advantage, in their calculations.
About 7.6 million people get drug coverage through a Medicare Advantage plan; 17.4 million are in drug-only plans.
Avalere analyzed just the drug-only plans. Among the 10 most popular drug-only plans, customers of Humana Inc., such as the Clarks, will experience the biggest price increases — more than 60 percent. The company’s enhanced plan is jumping from $23.34 to $38.21 on average, though customers may pay less or more depending upon where they live. The company’s standard plan is jumping from $25.52 to $40.83.
The two Humana plans rank second and third in terms of enrollment, behind the AARP Medicare Rx Preferred Plan, administered by UnitedHealthcare. The premiums for the AARP preferred plan will go up 15.5 percent.
Humana became a major player in the drug benefit by offering the lowest premiums when the program began. In some states, residents could enroll for as little as $1.87 a month. Since 2006, Humana’s premium for the standard plan has increased about 329 percent.
Log into MyBuffalo to post a comment
MyBuffalo is the new social network from Buffalo.com. Your MyBuffalo account lets you comment on and rate stories at buffalonews.com. You can also head over to mybuffalo.com to share your blog posts, stories, photos, and videos with the community. Join now or learn more.
Reader comments