Most Medicare recipients concerned about impact of inflation on prescription costs

Although soaring inflation is squeezing the budgets of all Americans, senior citizens and Medicare recipients may be especially hit hard.

“Inflation is a big concern, and many already are feeling the pinch of inflation when it comes to their health care costs,” according to a recent survey of 2,500 Medicare beneficiaries by eHealth. “Ninety-five percent say they are worried about the impact of inflation on health care costs, and 45% say their personal health care costs already have increased as a result of inflation.”

Among the key findings:

Medicare beneficiaries are most likely to worry about increased prescription costs and Part B Medicare premiums. Sixty-five percent say they worry about inflation’s impact on their prescription drug costs; 65% also worry about higher Medicare Part B premiums (typically taken from their Social Security checks); 60% worry about higher copays and deductibles; and 57% worry about higher premiums for other forms of Medicare coverage.

A strong majority wants the government to work with pharmaceutical companies to lower drug costs. Eighty-six percent say Medicare should directly negotiate with drug companies to lower costs; 2% say Medicare should not directly negotiate costs with drug companies.

Action on drug costs would relieve concerns about inflation for many Medicare beneficiaries. Nearly 9 in 10 respondents say government action to lower drug costs would make a difference in their concerns about health care cost inflation. Among these, 40% say it would make “a big difference,” 48% say it would make “some difference”, while 12% say it would make “no difference.”

Half of Medicare beneficiaries are vulnerable to premium increases of 10% or less. Thirty percent say their Medicare premiums already are unaffordable for them; 14% say an increase of 5% or less would make their premiums unaffordable.

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More than half say a 10% increase in prescription costs would be unaffordable for them. Twenty-six percent say the drug costs they face today already are unaffordable for them, while 16 say an increase of 5% or less would make their drug costs unaffordable.

“Seniors on a fixed income are particularly vulnerable to inflation’s impact on health care costs,” eHealth CEO Fran Soistman says. “Our survey shows the consequences of inflation are immediate and that senior citizens are concerned about their ability to afford monthly premiums and other health care costs.”