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The basic monthly premium for standard Medicare Part D coverage is decreasing in 2023, the Centers for Medicare and Medicaid Services announced today.
The average premium for drug coverage will be approximately $31.50 in 2023, compared to $32.08 in 2022, a 1.8% decrease.
WHY THIS MATTERS
CMS releases the projected average basic monthly Part D premium–calculated based on plan bids submitted to CMS–annually to help beneficiaries understand overall Part D premium trends before Medicare open enrollment.
Medicare open enrollment for coverage beginning January 1, 2023 will run from October 15 to December 7.
CMS anticipates releasing the 2023 premium and cost-sharing information for 2023 Medicare Advantage and Part D plans in September 2022.
CMS is also releasing additional information for Medicare Advantage Organizations and drug plan sponsors such as the Part D national average monthly bid amount, the Part D regional low-income premium subsidy amounts, the de minimis amount, the Medicare Advantage employer group waiver plan regional payment rates and the Medicare Advantage regional preferred provider organization benchmarks.
THE LARGER TREND
The Medicare Part D program helps people with Medicare pay for both brand-name and generic prescription drugs. Part D remains one of Medicare’s most popular programs, with more than 49 million Medicare beneficiaries enrolled for prescription drug coverage, CMS said.
CMS said it continues to analyze changes to the Part D program carefully, and engages with stakeholders to identify opportunities for improvements, particularly for reducing costs.
Total drug spending in the U.S. grew 7.7% in 2021 compared to 2020, hitting $576.9 billion in total spend, and this trend is expected to continue, with an estimated 4 to 6% increase in national drug spending in 2022, according to a report from the American Society of Health-System Pharmacists.
Earlier this month, Senate Democrats released a plan for Medicare to negotiate drug prices on 10 drugs, with that number increasing in subsequent years.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
