The Kaiser Family Foundation (KFF) released a brief analyzing the changes in drug coverage and costs under the Medicare Prescription Drug Program (Part D) since 2006.  This report, “Medicare Prescription Drug Plans in 2009 and Key Changes Since 2006”, examines trends in plan availability, premiums, cost sharing, gap coverage, and utilization management.   The report concludes that premiums, cost-sharing, the use of specialty tiers, and utilization restrictions have increased since 2008 and that, while most plans do not offer gap coverage, those that do primarily cover generic medication.

From the report:

Since 2006, Medicare beneficiaries have had access to prescription drug coverage offered by private plans, either stand-alone prescription drug plans (PDPs) or Medicare Advantage prescription drug plans (MA-PD plans). These Medicare drug plans (also referred to as Part D plans) receive payments from the government to provide Medicare-subsidized drug coverage to beneficiaries enrolled in a Part D plan. Part D plans are required to offer either a defined standard benefit or one that is equal in value, and may also offer an enhanced benefit.

Medicare drug plans must meet defined requirements, but may vary in terms of premiums, benefit design, gap coverage, formularies, and utilization management rules. Today, more than 26 million Medicare beneficiaries are enrolled in Medicare drug plans, including 17.5 million in stand-alone prescription drug plans and 9 million in Medicare Advantage drug plans. This report summarizes findings from a series of Medicare Part D 2009 Data Spotlights documenting changes in drug coverage and costs since 2006, and incorporates some additional information. It presents key findings related to Medicare drug plan premiums, the coverage gap, benefit design and cost sharing, the specialty tier, formularies, and utilization management, based on data from the Centers for Medicare & Medicaid Services (CMS) for all plans participating in Part D. More detail about the methods used in this analysis is provided on page 8.

Full report: Medicare Prescription Drug Plans in 2009 and Key Changes Since 2006 (PDF|643KB)

Kaiser Family Foundation. (2009). Medicare prescription drug plans in 2009 and key changes since 2006. Hargrave, E., Hoadley, J., Cubanski, J., and Neuman, T.