The Centers for Medicare & Medicaid Services (CMS) released their 2018 average basic premiums projections for Medicare Part D plans. The average monthly premiums for a basic Medicare drug insurance plan are expected to be around $33.50, dropping $1.20 from 2017.
How Does CMS Make the Projection?
This projection is made by the independent CMS Office of the Actuary and based on bids submitted by plans for basic coverage in 2018. These predictions may not ultimately be the average premium, so researching a plan before enrolling is critical in avoiding surprises.
The Growth of Drug Spending
This decline comes as a surprise to some, as prescription drug spending continues to grow. Part D plans outpace every other kind of Medicare program spending due to expensive specialty medications. Despite this, CMS is adamant that insurers will continue to offer reasonably-priced coverage for seniors.
“We are committed to making prescription drug plan premiums affordable so that seniors and people with disabilities in the Medicare program can access the prescription drugs that they need,” CMS Administrator Seema Verma said.
The predicted drop in premiums will certainly come as welcome news to the 41 million citizens who receive Part D benefits.
What Are the Next Steps for Me?
The 2018 Annual Enrollment Period is coming up soon. It begins on Sunday, October 15, and runs until Thursday, December 7. CMS expects to release 2018 premium and costs for health and drug plans by the middle of September.
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To help you prepare for the Annual Enrollment Period, check out Shop & Enroll’s Plan Finder. The tool shows you all available prescription drug plans in any given zip code, along with monthly premiums and annual deductibles.
Further Reading
CMS.gov — Medicare Issues Projected Drug Premiums for 2018
The Shop & Enroll Blog — What is Medicare Part D?
