(Washington, DC)— According to new data released by the Centers for Medicare & Medicaid Services (CMS), the 2008 average beneficiary premium for standard Part D coverage is roughly $25, a figure far lower than the $41 figure that was originally estimated in 2003. The relatively stable premium figure confirms the success of Medicare prescription drug plans’ (PDPs) ability to continue providing savings and access for beneficiaries in Part D, said the Pharmaceutical Care Management Association (PCMA) today.

The Part D average premium of roughly $25 for basic coverage is 40 percent lower than what was originally forecasted when the program was established. The premium for basic coverage did increase slightly from $22 in 2007 to $25 in 2008. According to CMS, that slight increase was “due primarily to technical adjustments required by law rather than increased bids.”

“Part D sponsors continue to exceed expectations in terms of the savings, choice and satisfaction they offer to America’s Medicare beneficiaries,” said PCMA President Mark Merritt. “In 2008, many beneficiaries will be able to choose a plan that offers the same or even lower premiums than they had in 2007— while still enjoying tremendous access to the medications they need.”

Numerous surveys show that beneficiaries have high satisfaction with the program. It is generating deep discounts, while also providing broad access to necessary prescription medicines. According to CMS, beneficiaries in Part D are saving an average of $1,200 compared to those without coverage, while the program is 30 percent less expensive for the first ten years than originally estimated.

In addition, several other reports have illustrated the savings beneficiaries are enjoying in Part D. According to a recent study by IMS Health, Part D lowered out-of-pocket costs for previously uninsured seniors by 60 percent per prescription. Earlier this year, PricewaterhouseCoopers (PwC) found that PBM tools in Part D are estimated to save beneficiaries $693 billion over the 2008 to 2017 period, including $43 billion in reduced prescription drug costs in 2008 alone.

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Contact Information:
Charles Coté 202-207-3605