A new Medicare effort that attempts to make it easier for seniors to pick prescription plans may result in 3 million seniors switching coverage options during this fall’s open enrollment season.
Researchers at Avalere Health estimate that more than 3 million seniors will see their drug plans disappear as Medicare does away with duplicate coverage and supplies consumers with more focused choices.
Federal health officials told the Associated Press that seniors will see an increase in Medicare prescription premiums, but will also receive better coverage.
Medicare administrator Don Berwick said in an AP interview that monthly premium for drug plans will be $30 in 2011, resulting an increase of $1 or about 3 percent in 2010.
Seniors should be aware of unexpected changes. But those paying higher drug premiums may have something to look forward to. The new health-care bill will begin to close what’s called the doughnut hole gap. As a result, those in the “hole” will receive a 50 percent discount on brand name drugs, and 7 percent off on generics.
“These very modest increases in premiums, along with the new discounts … are going to make medications more affordable to Medicare beneficiaries,” Medicare Administrator Don Berwick told the Associated Press.
Medicare prescription plans can vary widely in terms of pricing and benefits. Consumer advocates recommend that seniors shop around to find the best plan for their individual prescription needs.
- Read the Associated Press story, “More than 3M Seniors May Have to Switch Drug Plans.”
- Read the Associated Press story, “Modest premium increase for Medicare drug plans”
- Find a Medicare Plan
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