Medicare Part D premiums to go up 24 percent next year

The Centers for Medicare and Medicaid Services announced Thursday that more than three-fourths of Medicare Part D prescription plans will be raising their premiums next year and that the average premium will increase by 24 percent (Source: “Medicare drug-plan premiums to climb in 2009,” Akron Beacon-Journal, Sept. 26, 2008).

There are 1.8 million Ohioans enrolled in Medicare Part D.

Medicare beneficiaries also will have just 49 drug plans to chose from, down from 58 last year. Enrollees in 37 of the available plans may also be faced with paying significant amounts of money out of pocket for prescription drugs because of a so-called “doughnut hole” in coverage. After drug costs reach $2,700 (an increase from $2,510 last year), beneficiaries are responsible for potentially paying more than $3,000 out of pocket until catastrophic coverage starts.

That potential gap is part of all of the plans in Ohio that pay for brand-name drugs. A dozen Medicare drug plans will provide at least some generic medicines without a gap in coverage (down from 17 last year). However, those plans are the most expensive, ranging from $50.10 a month to $97.50 a month.