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

A small team of workers responds best in emergencies, expert says

A small team of workers responds best in ...

Long-term care providers should consider a "flat" crisis management approach that relies on a core group of staff members, experts advised Wednesday at the LeadingAge annual conference.

Nursing homes have better pain and catheter management if leaders have more ...

Nursing homes led by administrators and directors of nursing with higher levels of education and certification have better outcomes on some key quality measures, according to recently published findings.

Court green-lights charges that a healthcare network underused observation stays

A whistleblower can continue to pursue charges that a Nevada healthcare network routinely admitted people as hospital inpatients when they should have been placed in observation status, a federal appeals court recently ruled.