By the Numbers: Administration’s Proposed Changes to Medicare Part D

February 26, 2014

Multiple Analyses Find Administration’s Proposed Rule Would Lead to More #BrokenPromises, Higher Costs, and Fewer Choices for Seniors  

The Medicare Part D program is a proven, successful model that offers seniors quality, affordable health care choices. Despite this success, a proposed regulation from the Centers for Medicare and Medicaid Services threatens the competitive nature of the program, which would lead to more broken health care promises. Multiple analyses found the negative effect of the administration’s proposed rule, including fewer choices for seniors and higher costs for both seniors and taxpayers.

If Seniors Like Their Prescription Drug Plan, They Could Lose It

  • Milliman estimates that up to 50 percent of Part D plans may be eliminated or materially changed.
  • Avalere found that 94 percent of seniors – totaling 7.4 million seniors – enrolled in enhanced benefit plans through Medicare Part D could have their plans cancelled or disrupted.
  • Avalere estimates that 214 enhanced plan options would be eliminated or disrupted.

Seniors and Taxpayers Alike Face Higher Costs

  • Actuaries at Milliman estimate that 6.9 million seniors with Part D prescription drug coverage may experience significant premium and cost-sharing increases next year.
  • An analysis from the American Action Forum estimated that seniors face a 20 percent premium increase for their prescription drug coverage. For a state-by-state breakdown of these effects, click here.
  • Taxpayers are estimated to pay as much as $1.6 billion more per year on the Part D program, according to analysis by Milliman.

The Energy and Commerce Health Subcommittee today reviewed the proposed rule at a hearing, “Messing with Success: How CMS’ Attack on the Part D Program Will Increase Costs and Reduce Choices for Seniors.” Energy and Commerce Committee Chairman Fred Upton (R-MI), Ways and Means Committee Chairman Dave Camp (R-MI), and Senate Finance Committee Ranking Member Orrin Hatch (R-UT) recently called on Health and Human Services Secretary Kathleen Sebelius and CMS Administrator Marilyn Tavenner to rescind the proposed rule.