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Average Medicare prescription premiums won't rise in 2012, Health and Human Services says

WASHINGTON — The Obama administration had good news for seniors Thursday: The average monthly premium for Medicare's popular prescription program won't go up next year.

Many seniors may even see a dip in their costs, particularly if they shop around during open enrollment season this fall.

Officials credited growing use of generics and competition within the program, which is delivered through private insurance companies. Medicare also expects to share in a coming bonanza as several top-selling brand name drugs get generic competition in the next year or so.

The Health and Human Services Department projects the average premium for 2012 will be about $30 a month, hardly changed from $30.76 this year.

Because the 2012 estimate is an average, it does not reflect premiums for every individual. Some seniors may see an increase. But they will have options. Plenty of bargains should be available during open enrollment season.

Officials also said 900,000 Medicare beneficiaries with high drug costs have received a 50 percent discount on brand name drugs this year, a benefit of President Barack Obama's health care law. That number will keep growing as more people fall into the coverage gap known as the doughnut hole. The health care law gradually closes the gap.

Medicare covers about 47 million seniors and disabled people. Overall, about 9 in 10 beneficiaries have some kind of prescription drug plan. But more than half rely on the prescription program, also known as Part D.

Average Medicare prescription premiums won't rise in 2012, Health and Human Services says 08/04/11 [Last modified: Thursday, August 4, 2011 11:11pm]
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