Prescription drug plans may raise premiums

WASHINGTON, Oct. 8 (UPI) -- If U.S. seniors stay in their current Medicare prescription drug plans, the average beneficiary may see a 21 percent monthly premium increase in 2008.

An analysis of federal data released by the Centers for Medicare & Medicaid Services by the private research firm Avalere Health in Washington computed an "enrollment weighted" average premium for the Medicare Part D marketplace.

The analysis found the top 10 prescription drug plans sponsors in Medicare have more than 80 percent of the people enrolled in stand-alone prescription drug plans, and among the top 10 plan sponsors, all have raised their premiums, with the exception of two: CVS Caremark's SilverScript plan and First Health's Part D Premier plan, said said Dan Mendelson, president of Avalere Health.

Using Avalere's enrollment-weighted premium methodology, the Humana prescription drug plans Standard -- currently with the second-most enrollment -- raised its premium an average of 69 percent. The largest increase -- 89 percent -- was by United's Medicare Rx AARP Plan-Saver prescription drug plans.

"The reality of the Medicare experience is that beneficiaries have been very loyal thus far to their initial plan selections," Mendelson said in a statement. "If consumers stick to their choices again, they are likely to see a dramatic increase in their monthly premiums. But, consumers who shop around may be able to find lower cost alternatives."