Medicare beneficiaries have fewer prescription drug options than in the past, but they're going to pay significantly more for drug plans offered through Medicare Part D.
Over the past decade, the average number of Medicare Part D plans available to seniors has declined dramatically, from a high of 55 in 2007 to a mere 26 next year, according to a new report from the Kaiser Family Foundation.
The availability of course differs by region. While seniors in sparsely-populated Alaska enjoy an average of only 19 Part D plans, many populous states in country have an average of 28 available plans, including California, Texas, Illinois, Michigan, Missouri and Virginia.
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Premiums have also risen an average of 60 percent over the past ten years, and are poised to rise another 13 percent between 2015 and 2016. The average monthly cost of a Medicare Part D plan will rise from $36.68 to $41.46, the largest increase since 2009.
The analysis also found that a significant portion of beneficiaries who are not eligible for low income subsidies will be paying more than $60 a month if they stay enrolled in the same plan.
Those who are eligible for subsidies will have fewer options for premium-free coverage than before; the average low-income beneficiary will have to seven premium-free drug plans. Many who are currently not paying premiums will have to move to a different plan to continue getting the same deal.
Similarly, more prescription drug plans are imposing deductibles on enrollees. This year, a full two-thirds of beneficiaries will be subject to a deductible, a new high. By law, the maximum deductible a plan can impose is $360.
But one of the most dramatic changes to Part D in recent years is the introduction of tiered pharmacy networks, which offer enrollees incentives to use preferred pharmacies. The percentage of plans that include such an arrangement has risen from 7 percent in 2011 to 84 percent in 2016.
Medicare's annual enrollment period runs from Oct. 15 through Dec. 7.
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