Medicare Prescription Drugs Premiums to Increase

By Jenny Huntington
17:18, September 26th 2008
72 votes
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Medicare Prescription Drugs Premiums to Increase

Analysis of government data has revealed that in 2009, Medicare prescription drug-plan premiums will rise by approximately 31%.

Consulting company Avalere Health LLC informed that, according to the results of their research, the average premium would go from $30 to $37 next year, which translates as a 24% increase from 2008.

One of UnitedHealth Group Incorporated's AARP plans, which is the most popular one amongst Americans with 2.7 million participants, is said to register a 15.5% raise in the monthly premiums, reaching the $37 amount.

Medicare, a social insurance program under the United States government’s administration, provides health insurance coverage for people over the age of 65, as well as for the disabled.

Presently, the program is divided into four different parts: Part A, which covers hospital care under certain criteria that have to be met, Part B that helps pay for services including nursing services, x-rays, laboratory and diagnostic tests, influenza and pneumonia vaccinations, Part C, which offers enrollers the possibility to receive their benfits through private health insurance plans and Part D, Medicare’s plan concerning prescription plans. The latter was added in 2006, coming into effect on the first day of the year. The federal program subsidizes the costs of prescription drugs for Medicare beneficiaries. Annual enrollment for Part D begins on November 15 of the prior plan year and lasts 6 weeks.

The health insurance companies are required to inform Medicare prescription durg plan’s beneficiaries on the price they will have to pay in 2009 for the service.



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