Since implementation in 2006, millions of Medicare beneficiaries have gained access to affordable prescription drug coverage through Part D. Under Part D, drug manufacturers and insurance providers negotiate directly to achieve substantial rebates and the lowest possible price for medications.
The savings achieved through open-market negotiations are then passed on to beneficiaries in the form of reduced premiums and low prices. As a result, Part D monthly premiums for 2016 are almost 50 percent less than initial estimates. This competitive structure, void of government intervention, provides beneficiaries with not only savings but choice. Each year, beneficiaries can shop around to find the coverage that works best for them.
Medicare Part D’s ability to keep drug costs low has expanded access to medications and increased adherence to treatments. This ultimately helps patients avoid complications or costly hospitalizations, creating even more savings for Medicare. Case in point, the reduction of hospital admissions helped prevent over 22,000 deaths between 2006 and 2014 and saves Medicare approximately $1.5 billion each year.
To learn more about the Part D program’s success click here.
Since its creation, Medicare Today has monitored Part D’s impact on seniors through our annual Senior Satisfaction Survey. Seniors have consistently reported high satisfaction with the Part D program.
In fact, nearly 9 in 10 seniors enrolled in Part D are satisfied with their coverage and 80 percent of seniors think their Part D plan is a good value. Additionally, 92 percent say their plans are convenient to use and 86 percent believe that their plan works well and without hassle.
Interested in knowing more about Part D in your state? Visit our State-by-State page to learn about how the program is helping beneficiaries in your area.