Ritter Insurance Marketing, Craig Ritter

Medicare Prescription Drug Premiums to Increase Slightly in 2011

Here is a posting from HealthNewsDigest.  CMS is estimating that average premiums on Stand Alone Part D Plans (PDP) and Medicare Advantage Plans with Prescription Drugs (MAPD) will increase from an average monthly premium of $29 in 2010 to around $30 in 2011, a 3% increase.

Here is the official announcement from CMS.

Further, due to manufacturer discounts on brand name drugs in the Doughnut Hole, Medicare Beneficiaries will see an almost 50% reduction in the cost of their Brand drugs in the Doughnut Hole.  Generics will be subsidized by 7% in the Doughnut Hole, as well, due to changes to the benefit structure brought about by PPACA.

You can find rate book and supporting data, including low income subsidy amounts for 2011 by clicking here.

Posted by filed under 2011 MA Plans, CMS, News, Part D .

  • You make some good points Craig. I hope things do not get to ruined by healthreform for agents and medicare.

  • I am suprised medicare RX drugs did not go up much higher in 2011. What about medicare advantage premiums in 2011?

    • Dave:

      I think you’ll see bigger changes in the MA market versus the PDP market. PDP is competitively bid and always has been. In the MA market, pricing is set by CMS, so in 2011 since there was no increase in reimbursement, plans will appear worse due to the erosion due to Medical Inflation and increases in utilization.

© Ritter Insurance Marketing