By now you’ve probably read the news reports about Medicare Part D, and how successful the program has been. There has also been a lot of news about the fact that the average premium for Part D plans will go down this year.
While that’s true, keep in mind that this is an average —some plans may not see a premium increase, but some may. According to a report by Avalere Health published on September 9, 2011, most people on a Medicare Part D plan are likely to see a premium INCREASE in 2012, if they accept the same plan that they had in 2011.
Every year, Avalere Health publishes some informative reports that analyze what’s happening to Medicare Part D and Medicare Advantage plans in the coming year. Last week they published the analysis we’re referring to, which digs into the 2012 Medicare Part D plans. Here’s the full report.
If you don’t want to read the whole thing, we drafted a brief summary.
Overall the report found:
- When you take every Medicare prescription drug plan available and average out their monthly premiums, premiums go down in 2012
- But, most people on a Medicare Part D plan may actually see their premiums increase in 2012 because nearly half of all people (45%) enrolled in a Medicare Part D plan are enrolled in one of only three Part D plans
- And, among those top three plans, the top two plans will have premium increases of 14% and 4% respectively
- The third place plan – by enrollment – will have a 9% premium decrease
Among the top 10 Part D prescription drug plans (by enrollment):
- 6 out of 10 plans will have premium increases
- The largest plan, which has 27% of all enrollees, will have the largest increase (14%)
Low income subsidies:
- 864,000 people on Medicare Part D receive a low-income subsidy and will have to be assigned to a new plan, because of these premium increases
- Among those 864,000 people losing their existing plan due to rate increases, 535,000 of them are on the nation’s most popular plan, which is experiencing a 14% rate increase
What do all of these changes and rate increases mean? To us, they’re a sign that you shouldn’t breeze through Medicare’s open enrollment period this year.
If you need help, you can contact PlanPrescriber.com at 800-404-6968 – TTY User: 711. You can also contact Medicare directly at 1-800-MEDICARE (1800-633-4227). TTY users should call 1-877-486-2048, 24 hours a day/ 7 days a week; the Social Security Office at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. TTY users should call, 1-800-325-0778; or Your Medicaid Office (only required for pieces referencing Part D benefits or cost-sharing).
Medicare has neither reviewed nor endorsed this information.
