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Medicare drug premium calculation doubted

WASHINGTON, Oct. 13 (UPI) -- Opinions and calculations differ for how much U.S. seniors will pay in premiums for Medicare Part D next year.

U.S. Rep. Henry A. Waxman, D-Calif., said his calculations show the average drug premiums for Medicare Part D will rise to $29 a month in 2007, The Washington Post said Friday. The Bush administration said the monthly average would increase to $24 next year.

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Waxman said the Centers for Medicare and Medicaid Services officials' calculations "appear to be wrong" and "disguise" increases in premium payments, the Post said.

A Medicare official called Waxman's analysis "misleading," saying it may discourage people enrolled in the Medicare drug benefit from exploring all options, the Post said.

Waxman and Medicare officials calculated average premiums differently, the Post said. The administration average is based on both stand-alone Medicare plans covering drugs only and subsidized HMO-style plans offering a range of healthcare options without charging a separate premium. Waxman's staff focused on the stand-alone plans, which they said was the choice for 90 percent of seniors enrolled in the drug benefit program, the Post said.

Medicare Part D open enrollment for 2007 begins Nov. 15.

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