Medicare Prescription Drug Premiums Will Rise in 2009

By Alice Carver
13:50, August 15th 2008
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Medicare Prescription Drug Premiums Will Rise in 2009

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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