Analysis Finds Average Monthly Medicare Drug Plan Premiums May Rise in 2010 if Beneficiaries Remain in Current Stand-Alone Drug Plans

Monthly premiums for Medicare beneficiaries who are enrolled in Part D stand-alone prescription drug plans will rise 11 percent on average, to $38.85 in 2010, if beneficiaries stay in their current plans, this according to a new Kaiser Family Foundation analysis of the 2010 Part D plan offerings. Average monthly premiums have gone up by 50 percent for stand-alone Part D prescription drug plans since the launch of Medicare's drug benefit in 2006, when monthly premiums averaged $25.93, the analysis finds.

As many as 1.2 million people on Medicare would see monthly premium increases of at least $10 unless they switch to a less expensive plan. Many of those would receive lower Social Security checks because their Part D premiums are deducted directly from their payments, and Social Security does not project a cost-of-living increase for 2010.

In addition, for the first time since the Medicare drug benefit launched, a majority of stand-alone drug plans (61 percent) will require enrollees to meet a deductible before coverage begins, up from 45 percent last year and from 42 percent in 2006.

To learn more, read the report Medicare Part D Spotlight: Part D Plan Availability in 2010 and Key Changes Since 2006. The analysis is based on an analysis of the 2010 Medicare drug plan information released by the Centers for Medicare & Medicaid Services on October 1, 2009.