Monthly premiums for Medicare Part D stand-alone prescription drug plans will rise 11 percent on average to $38.85 in 2010 if beneficiaries stay in their current plans, according to the Kaiser Family Foundation.
An analysis of the 2010 Part D prescription drug plan offerings estimates that average monthly premiums have gone up by 50 percent since the launch of Medicare’s drug benefit in 2006, when monthly premiums averaged $25.93.
Kaiser officials say as many as 1.2 million people on Medicare would see monthly premium increases of at least $10 unless they change to a less expensive plan. Many would receive lower Social Security checks because their Part D premiums are deducted directly from their payments, and Social Security does not project a cost-of-living increase for 2010.
A majority of stand-alone drug plans (61 percent) will require enrollees to meet a deductible before coverage begins, up from 45 percent last year and from 42 percent in 2006.
According to Kaiser,f our out of five stand-alone Part D plans will have a gap in coverage, known as the “doughnut hole,” up 5 percent from last year. When enrollees reach the gap, they pay the full price of their medications. Among the 20 percent of stand-alone plans with some coverage in the gap, most will limit that coverage to generic drugs.
"Medicare Part D Spotlight: Part D Plan Availability in 2010 and Key Changes Since 2006" is based on an analysis of the 2010 Medicare drug plan information released by the Centers for Medicare and Medicaid Services on Oct. 1, 2009.