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Report: Part D premiums could be significantly higher depending on enrollment

Physician Practice Advisor, November 9, 2005

A high level of participation by beneficiaries with high expected drug spending could raise Medicare Part D premiums significantly, claims a new report by the Kaiser Family Foundation and Avalere Health. The report finds that if more higher-spending groups enroll, the average Part D premium could be as much as 42 percent higher than if there is more balanced enrollment.

"The impact of enrollment in the Medicare prescription drug benefit on premiums" focused on three groups: low-income subsidy eligible beneficiaries, beneficiaries projected to lose retiree health benefits, and beneficiaries currently enrolled in the traditional fee-for-service program who do not qualify for low-income subsidies. The study then projected five different enrollment scenarios ranging from full participation to 20% participation that includes only the highest spenders.

To view the full report, click here.

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