Medicare prescription drug premiums to remain stable

NEW YORK — The Centers for Medicare and Medicaid Services this week announced that they expect the average premium for a basic Medicare Part D prescription drug plan in 2016 to remain stable at about $32.50 per month.

“Seniors and people with disabilities are continuing to benefit from stable prescription drug premiums and a competitive and transparent marketplace for Medicare drug plans,” acting CMS administrator Andy Slavitt said. “While this is good news, we must ensure that Medicare Part D remains affordable for Medicare beneficiaries so that they can have access to the prescription drugs that they need.”

Total Part D costs per capita grew by almost 11% in 2014, driven largely by high cost specialty drugs and their effect on spending in the catastrophic benefit phase, and total Medicare payments to plans for reinsurance have grown by more than three times the pace of premium growth, CMS report.

On the other hand, growth in per-Medicare enrollee spending has decreased, averaging 1.3% over the last five years, the report said. The recent 2015 Medicare Trustees report projected that the Medicare Trust Fund will remain solvent until 2030, 13 years longer than they projected in 2009, prior to the passage of the Affordable Care Act, CMS report.

Seniors and people with disabilities are continuing to see savings on out-of-pocket drug costs as the ACA closes the Part D donut hole over time, according to the report. Since the enactment of the ACA, more than 9.4 million seniors and people with disabilities have saved over $15 billion on prescription drugs — an average of $1,598 per beneficiary, the report said.

For plan years from 2011 to 2015, the average Medicare Part D monthly premium for a basic plan has been between $30 and $32, the report said. Today’s projection for the average premium for 2016 is based on bids submitted by drug and health plans for basic drug coverage for the 2016 benefit year and calculated by the independent CMS Office of the Actuary, CMS said.

The upcoming annual open enrollment period will open Oct. 15 and ends Dec. 7. New benefit choices are effective Jan. 1, 2016.