Medicare Drug Benefit Premiums Will Increase for Many Beneficiaries
With the fall open-enrollment period for the Medicare Part D program set to begin Nov. 15, many beneficiaries will experience higher premiums and some insurers are "sharply adjusting" copayments, the Wall Street Journal reports.
Analysis
According to an analysis of five large states -- Florida, New York, California, Texas and Illinois -- by Avalere Health, premiums for the 10 largest drug plans are expected to increase by an average of 31% in 2009.
Avalere found that average premiums for the UnitedHealth Group-sponsored AARP MedicareRx Preferred -- the country's largest Medicare drug plan with 2.7 million beneficiaries -- are expected to increase by 18% in 2009 to $34.92 monthly.
Premiums for Humana's PDP Enhanced plan, the nation's third-largest Part D plan with 1.4 million beneficiaries, will increase by 51% on average to $39.56 monthly, according to the analysis.
Copays for brand-name medications on the preferred drug list of AARP MedicareRx Preferred will be $36.40 per purchase on average, an increase of 21%, according to the analysis. Average generic copays will remain the same -- $7 per purchase -- for the plan.
Average generic copays for Humana's plan will increase by 75% to $7 and average copays for preferred brand-name drugs will increase by 60% to $40.
However, some copays are expected to be lowered in 2009, according to the Journal.
Humana's PDP Standard plan, the second-largest Part D plan with 1.5 million beneficiaries, will lower its average co-insurance rate for generic drugs from 25% this year to 14% in 2009.
The Journal reports that beneficiaries' total out-of-pocket expenses, including premiums, deductibles and copays, will vary based on where they live and which drugs they use.
Open Enrollment
About 26 million Medicare beneficiaries who are signed up for the Medicare drug benefit are permitted to change plans annually from Nov. 15 to Dec. 31.
While in previous years only a small portion of beneficiaries elected to do so, some experts this year say people might be forced to "dig deep into the insurance literature" to determine how their plan could change, according to the Journal.
Analysts said the cost increase might push more beneficiaries to switch to private Medicare Advantage plans, which often include prescription drug benefits (Zhang, Wall Street Journal, 11/4). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.