Medicare Drug Premiums Expected To Rise In 2009

By Anna Boyd
23:05, September 28th 2008
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Medicare Drug Premiums Expected To Rise In 2009

Premiums for Medicare drug coverage will rise an average 24 percent for elderly and disabled Americans, according to Avalere Health LLC, a Washington, D.C., consulting company that analyzed data from Medicare.

More exactly, the average premium will reach $37 a month for all standalone drug plans, up from $30 in 2008. The increase follows a 21 percent rise this year. The 10 largest drug plans raised premiums from 8 percent for UnitedHealth Group Inc.’s AARP MedicareRx Saver to 64 percent for Humana Inc.’s PDP Enhanced plan, Avalere said.

The average monthly premium for Humana Inc.'s basic health insurance plan will increase from $9.51 in 2006 to $25.52 in 2008 and to $40.83 in the coming year. This is considered the second largest plan by enrollment, considering the fact that an estimated 1.5 million people are involved. UnitedHealth Group Inc.'s AARP has 5.4 million participants and is the nation’s most popular plan.

Kerry Weems, acting director of Centers for Medicare and Medicaid Services, said beneficiaries should search the market for a plan that fits them in order to avoid “significant premium increases or changes.”

“We encourage individual beneficiaries to review how their plans are changing and what other options are available to them to determine which plan best meets their needs,” Weems said.

Medicare participants can begin enrolling in drug coverage for next year from Nov. 15 through Dec. 31.

More information on Medicare Drug Plan can be found on the Centers for Medicare and Medicaid Services’ Web site.



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