Seniors enrolled in the Medicare Part
D drug program will see their monthly
premiums rise by an average of 21%
unless they shop around for cheaper
plans, according to a new analysis by
researchers at Avalere Health. The cost
of the drug program for upper-income
Medicare recipients, however, will rise
even higher under a new plan being
floated around Washington.
Avalere?s analysis of federal data
released by the Centers for Medicare &
Medicaid Services found that 8 of the
top 10 prescription drug plan sponsors
in Medicare have increased their premiums
for 2008. The 2 companies holding
the line on premiums are: CVS Caremark?s
SilverScript plan and First
Health?s Part D Premier plan, said the
researchers.
The cost of drug coverage could rise
even more sharply for higher income
seniors under a means test proposal
being considered by the Bush administration.
Under the plan, Medicare beneficiaries
with annual incomes of >$80,000
would be required to pay additional fees
to participate in the drug program.
Sen John Ensign (R, Nev) is developing
a legislative proposal incorporating the
plan, which could reduce the cost of
Medicare Part D to taxpayers by billions
of dollars.
Inside the Issue
