A study released today says if you use Medicare Advantage to help pay for your prescription drugs, you’re getting a hefty hike in your premiums this year.
Avalere Health, a DC Consulting firm, estimates that the cost of the average Medicare Advantage Prescription Drug Plan is jumping 14.2 percent in 2010. About 8.5 million elderly and disabled Americans use the popular private plan to supplement their government Medicare coverage.
Avalere estimates the average premium will go from $39.61 per month up from $34.69 last year, an increase of almost $5.
This predicted jump follows a cut in government payments to the private companies last year and could make things even tougher for Democrats’ efforts to pass health care reform. Some bills now circulating in Congress would cut those payments again which could affect premiums next year.
However, Administration officials counter that any increase in premium payments facing Americans is another reason that there needs to be comprehensive reform – to bring down everyone’s health care costs.