Spending on Medicare Part D program rises by $41 billion, CBO says

Share this article:

The cost of the new Medicare Part D program continues to rise, according to a new projection by the Congressional Budget Office.

CBO added $41 billion to its initial 2003 cost estimate, it said in a letter sent to lawmakers on March 4. While it originally estimated that the net cost of the Part D program would be $552 billion between 2004 and 2013, it revised this projection to $593 billion.

Total Part D costs are now projected at $851 billion between 2004 and 2015. CBO predicts that the program will cost $258 billion for the last two years.

The major factor in the $41 billion increase was $17 billion attributed to revisions in the cost of the drug benefit's low-income subsidy and transitional drug assistance. CBO sent its letter to House Energy and Commerce Chairman Joe Barton (R-TX), John D. Dingell (D-MI), House Ways and Means Committee Chairman William M. Thomas (R-CA) and Senate Finance Committee Chairman Charles E. Grassley (R-Iowa).

Share this article:

More in News

Involving nursing assistants with decisions may result in higher quality, study finds

Empowering nursing assistants and family members of nursing home residents in decision-making results improved service, a new study finds.

Also in the news for July 28, 2014 . . .

Nursing home aide accused of choking a resident....Monitoring pulse after stroke may prevent another stroke...Slow walking speed may predict dementia

Site-neutral payments likely to move forward, experts believe

Site-neutral payments likely to move forward, experts believe

As the Centers for Medicare & Medicaid Services and the Medicare Payment Advisory Commission evaluate site-neutral payments, a new brief from Health Affairs and the Robert Wood Johnson Foundation explores ...