Avalere analyzed recently released CMS data on 2014 premiums and star ratings for Medicare PDPs.

Key findings include:

Premiums: On average, PDPs with preferred pharmacy networks have lower premiums than PDPs without preferred networks.

  • For basic PDPs, the average monthly premium for plans with preferred networks is $29.83, 17% less than for plans without preferred networks.
  • For enhanced PDPs, the average monthly premium for plans with preferred networks is $49.15, 57% less than for plans without preferred networks.
  • For all PDPs offered in 2014, the top seven plans with the lowest average monthly premium all use preferred pharmacy networks.


Quality (Star Ratings): On average, PDPs with preferred pharmacy networks have similar star ratings compared to PDPs without preferred networks.

  • Basic PDPs with preferred networks have an average star rating of 3.3, compared to 3.0 stars for basic plans without preferred networks.
  • Enhanced PDPs with preferred networks have an average star rating of 3.5, the same as enhanced PDPs without preferred networks.


View the complete report.