A new Avalere Health analysis found that the top 10 standalone Medicare Prescription Drug Benefit Program (Part D) plans raised premiums an average of 10 percent in 2010.  Avalere estimates that the move affected nearly 10 million Medicare beneficiaries and nearly 70 percent of all standalone drug plan enrollees.  Though premiums for the top 10 plans rose from $31.14 a month in 2009 to $34.30 in 2010, Avalere notes that the Medicare premium increases are significantly smaller than comparable increases for non-Medicare plans. Avalere also found that premiums for all Part D plans have increased 40 percent since the beginning of the Part D program.  Finally, the analysis found that prescription drug cost-sharing continues to increase, raising enrollees’ out-of-pocket costs.

From the report: New analysis from Avalere Health shows that average monthly premium charged by the top ten most popular Medicare standalone prescription drug plans (PDPs) increased by 10% in 2010, affecting nearly 10 million insured Medicare beneficiaries.  These top ten plans insure 70% of all people enrolled in PDPs.  Avalere found that the average monthly premiums across all PDPs increased by over 40% since the inception of the prescription drug program.

Full report: http://www.avalerehealth.net/wm/show.php?c=1&id=847

Avalere Health.  (2010).  Costs to seniors creeping up in prescription drug program.