HR3590 Health Care Bill & Government Health Insurance

An announcement from federal health officials on Wednesday revealed a coming increase in premiums for Medicare prescription drug plans, according to a report by the Associated Press.

The increase will start next year, with the average monthly premium charged by Medicare drug plans for standard coverage rising to $30. Medicare administrator Don Berwick shared that this represents an increase of $1 over 2010, roughly 3 percent. Consumer advocates warn seniors, however, to check the plans that they have regarding how much of an increase their particular plan will have, so that they will not be surprised if the increase for their plan is different from the average amount that was announced.

Tricia Neuman of the Kaiser Family Foundation shared: “It’s always good news when premiums don’t go up by leaps and bounds, but seniors in some of the most popular plans may see higher premiums… They need to check their plans so they don’t have unpleasant surprises.”

The increase, according to officials, will be accompanied by an improvement in benefits, especially among seniors who are saddled with high prescription drug costs. This is being attributed to the fact that the move to close the Part D coverage gap, or the “doughnut hole,” will start next year. This year, Medicare beneficiaries who reached the doughnut hole received a one-time $250 rebate check. Next year, those who reach the coverage gap will get a 50 percent discount on brand name medicines and a 7 percent discount on generics. These discounts will increase annually until the gap is completely closed, estimated to occur in 2020.