Medicare Part D premiums to rise modestly as drug discounts take effect
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The average monthly Medicare Part D premium will rise by about $1 to $30 beginning next year. That is the same time that new benefits designed to begin closing the coverage gap kick in, health officials said Wednesday.
Despite the minor rise, seniors still should review their plans to avoid any surprises when the premium increases hit, the officials say. Some plans' monthly premiums can range in price from $12 to $120. Premium increases will vary accordingly, The Associated Press reported.
The premium increases will take effect around the same time as the new coverage gap-closing measures, according to CMS. Starting in 2011, Medicare recipients who are in the doughnut hole, or coverage gap, will receive a 50% discount on brand- name drugs and a 7% discount on generic drugs. The discounts will increase gradually until 2020, when the coverage gap will be closed, CMS officials said.