Part D Plans Back in the News

According to the USAToday and a Consumers Union study, over 1/4 of Medicare Part D insurers raised enrollee out-of-pocket costs during the 2006 plan year, often while the enrollees were locked into their plans. Similar results are expected in 2007.

The Centers for Medicare and Medicaid Services - the federal agency which oversees Medicare - questions the accuracy of the study because only a handful of drugs were tracked for price increases (Altace, Celebrex, Lipitor, Nifedipine ER, and Zoloft). They assert that most seniors are happy with Medicare Part D and never feel the effects of the price increase unless they happen to fall into the "donut hole".

Consumers Union believes that this study shows the need for enrollees to be better informed about Part D pricing, and to be offered an opportunity to switch plans in the case of a mid-year price increase.