Popular Medicare drug plans are in for an increase in premiums of nearly 10 percent next year, according to a new study.
An analysis from the healthcare research firm Avalere Health found that the 10 most popular Medicare Part D prescription plans would have an average increase of 8 percent next year. But on the flip side, a higher percentage of Medicare Advantage beneficiaries will have no premium in 2016.
A Medicare beneficiary receives prescription drug coverage from Part D or Medicare Advantage, which is a program that allows beneficiaries to buy a private plan.
Avalere’s analysis found that cost pressures are mounting for Part D.
The average Part D premium next year will be more than $40 for the first time in the program’s history, the company said. However, it won’t be much more than $40.
Assuming a beneficiary stays in the same plan, the average monthly premium for all Part D beneficiaries will rise from a projected $38.83 in 2015 to $41.34, Avalere said.
There will also be fewer plan options in 2016 with 886, a decrease from the 1,001 offered this year.
Of the 10 most popular Part D plans, five of them will have double-digit premium increases in 2016. Those 10 plans encompass more than 80 percent of Part D enrollment.
It is not clear why premiums are increasing for Part D. However, on Monday the Centers for Medicare and Medicaid Services announced a new program aimed at making Part D more efficient, unveiling a new payment model for Part D that will be tested in five U.S. regions.
The model gives Part D plans incentives for designing and implementing programs that get patients to take their medications. Other programs would focus on improving communication among healthcare workers and patients and ensure patients use medications properly.
The model will go into effect in January 2017.
Meanwhile, things appear to be much better for Medicare Advantage, which will see a 1 percent drop in average premiums in 2016 to $32.60.
Next year, 81 percent of Medicare Advantage beneficiaries will have a $0 premium option, compared with 78 percent now, the analysis said.
The study is based on an analysis of beneficiary data released earlier this month from the Centers for Medicare and Medicaid Services.
