Are Medicare Part D Premiums Really Remaining Stable For 2007?

According to USAToday, Representative Henry Waxman (D-CA) has issued a statement asserting that Part D premiums will actually increase for calendar year 2007. This runs counter to Centers for Medicare and Medicaid Services (CMS) claims that Part D premiums will remain stable for 2007. So who is right?

Premiums for stand-alone Part D prescription drugs plans will increase, on average, by about 13.2%, according to Congressman Waxman's staff. However, if you include other Part D plan options, including prescription drug coverage linked to Medicare Advantage plans, then the average Part D premium rate will remain about the same for 2007. Medicare Advantage plans are private insurance plans which combine Part A, Part B, and Part D benefits into a single package. For more information on Medicare Advantage, see my Medicare Advantage article.