With only the slightest of increases, Medicare recently announced that the average monthly cost for a Medicare Part D prescription drug plan in 2017 is projected to remain reasonably stable at approximately $34.
The estimate places 2017 prices only $1.50 higher than 2016 costs, even though Part D costs are continuing to rise faster than other areas of Medicare coverage. The disproportionate increase is propelled by expensive specialty treatments and their position within “catastrophic benefit” categories, and Medicare bears 80 percent of such medications.
“Stable Medicare prescription drug plan premiums help seniors and people with disabilities afford their prescription drugs,” Andy Slavitt, acting administrator of the Centers for Medicare & Medicaid Services (CMS),said. “However, I remain increasingly concerned about the rising cost of drugs, especially high-cost specialty drugs, and the impact of these costs on the Medicare program.”
Medicare Part D expenditures per enrollee are expected to rise by approximately 5.8 percent annually through 2025 — higher than the combined rate for Medicare Parts A and B (4 percent) and higher than initially anticipated. Additionally, a March 2016 Department of Health and Human Services report revealed high-cost prescription drug spending trends.
Projection for the average 2017 premium was based on bids submitted by prescription and health plans for basic drug coverage for that benefit year and calculated by the independent CMS Office of the Actuary. With the help of the Affordable Care Act, seniors and those with disabilities are saving on out of pocket drug expenses.
Since the enactment of the Affordable Care Act, more than 10.7 million seniors and people with disabilities have received discounts of over $20.8 billion on prescription drugs, an average of $1,945 per beneficiary.
The upcoming annual Medicare open enrollment period runs from Oct.15 through
Dec. 7. CMS expects to announce Medicare health and drug plan prices for the
2017 calendar year in mid-September.
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