New enrollees face high premium costs for Medicare drug coverage.
While the U.S. Congress scrambles to fix Medicare's strategic growth
rate-related cutbacks, the drug component's premiums have risen by as
much as 16 percent in the past year for new enrollees in its ten most
popular prescription plans, according to a June report written by
healthcare research firm Avalere Health.
The average premium paid
in May 2008 for the top ten Medicare Part D drug plans was $26.39, up
from $22.80 in July 2007. For the top three plans, this difference was
starker, with average May 2008 premiums of $28.15 and a July 2007
average of $22.57.
"Medicare beneficiaries are conscious of value,
and many switched into lower cost plans for 2008," Penny Mills, Avalere
vice president, says in a statement. According to the report, average
premiums would have grown by about 21 percent, had beneficiaries
remained in the ten most popular plans of 2007.
But not all the
top ten raised their rates. SilverScript lowered its monthly rate about
30 percent to $20.84 in 2008 from $27.40 in 2007, while expanding the
drugs covered on its formulary, notes Avalere. However, increases were
common, with Humana PDP Standard, AARP MedicareRx Saver and WellCare
Classic each raising premiums by more than 50 percent, the company
adds.
The ten most popular Part D plans controlled 72 percent of
the market in April 2008, a share that shrunk from 75 percent in June
2007.