An analysis by Avalere Health projects that over three million seniors may be forced to switch their Medicare Prescription Drug Program (Part D) plans as a result of new rules under national health care reform.  The Centers for Medicare & Medicaid Services (CMS) released regulations in April that require companies offering multiple Part D plans to ensure there are “meaningful differences” between them.  The rules also allow each company to offer only one basic Part D plan and two enhanced Part D plans in each region.  Avalere estimates that 2.75 million seniors in basic Part D plans and 350,000 in enhanced Part D plans will have to changes plans.  In total, Avalere estimates that up to 3.7 million seniors, or approximately 20 percent of the seniors enrolled in Part D, may be forced to change their plans under the new regulations.  The authors also project that many insurers will change their plan offerings and cost-sharing arrangements to allow them to offer multiple plans under the requirements.

Summary: Avalere Health Estimates Three Million Seniors Must Switch Medicare Part D Plans Under Health Reform

Avalere Health. (2010). Avalere analysis finds Medicare Advantage enrollees face higher premiums in 2010.