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Medicare’s beneficiaries will see a premium
increase in their current plan. The typical medical recipient can expect to see
an increase of about $3 in their monthly premiums for prescription drug
coverage in 2009, federal officials said. The average monthly premium for
Medicare’s prescription drug plan will increase to an estimated $28 in 2009.
The major reasons that caused the growth of
health-care spending are considered to be higher prices for medication and
medical services, as well as an increased use of medical care. The jump of 12
percent ups the monthly premium to $28 for standard drug coverage.
“First, there is a trend in prescription
drug cost growth generally -- prices tend to increase because of price
increases for existing drugs, the growth in the average number of prescriptions
per person, and the introduction of new drugs,” Kerry Weems, acting
administrator of the U.S. Centers for Medicare and Medicaid Services told
reporters.
Despite the increase, Medicare officials
said the monthly premiums are still way below what was projected when the
program was approved in 2003. Economists at the Centers for Medicare and
Medicaid Services forecast that health costs will almost double by 2017,
reaching around $4 trillion, according to a report published in the journal
Health Affairs.
About 25.4 million Americans have drug
coverage through Medicare. Medicare first offered its drug plans in 2006.
“Making sure we are paying for high quality
health-care services, not just the number of services provided, is just one of
the most critical issues facing the American public and the federal government
now and in the future,” Weems told Washington Post earlier this year in an
interview.
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