Medicare Part D Spotlight: Part D Plan Availability in 2010 and Key Changes Since 2006

This Kaiser Family Foundation report analyzes the 2010 Medicare drug plan information released by the Centers for Medicare & Medicaid Services on Oct. 1, 2009.

From the Report:

The average monthly PDP premium in 2010 (weighted by 2009 enrollment, assuming beneficiaries remain in their current plan) will be $38.85.4 This is an 11 percent increase from the weighted average monthly premium of $35.09 in 2009, and a 50 percent increase from $25.93 in 2006, the first year of the Medicare Part D drug benefit.

• Average monthly premiums (weighted by enrollment) have risen every year since 2006 for PDPs.
• The increase in monthly Part D premiums in 2010 is likely to result in reductions in monthly Social Security payments for many Part D enrollees, because no Social Security cost-of-living increase is projected in 2010.
• About 1.2 million beneficiaries enrolled in PDPs will experience an increase of at least $10 in their monthly plan premium unless they select a less expensive plan.

Kaiser Family Foundation. (2009). Medicare Part D Spotlight: Part D Plan Availability in 2010 and Key Changes Since 2006. Jack Hoadley, Juliette Cubanski, Elizabeth Hargrave, Laura Summer, and Tricia Neuman.

Full report: http://www.kff.org/medicare/upload/7986.pdf