Premiums for US Medicare Rx drug plan to remain low in 2011, says CMS; PhRMA comments

The USA's Centers for Medicare & Medicaid Services (CMS) announced last week that average 2011 Medicare prescription drug plan premiums will remain similar to rates beneficiaries are currently paying this year. This, coupled with new discounts for brand-name drugs through the Affordable Care Act, will help make medications more affordable for Medicare beneficiaries in 2011 and beyond.

Based on the bids submitted by Part D plans for the 2011 plan year, the CMS estimates that the average monthly premium that beneficiaries will pay for standard Part D coverage will be $30 - a $1 increase from the current year (2010) average premium of $29.

'Most Medicare prescription drug plan premiums should remain relatively stable next year, and all beneficiaries should compare their coverage under their current plan with the plans that will be offered in 2011 when that information becomes available in October,' said Jonathan Blum, deputy administrator of the CMS' Center for Medicare. 'The Affordable Care Act improves the value of drug coverage people with Medicare will receive next year, providing discounts on brand name drugs and coverage of generics in the coverage gap, or donut hole,' he added.