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New Milliman Study: Hepatitis C Drugs Could Increase Medicare Part D Spending by $2.9 to $5.8 Billion in 2015

Washington D.C. (PRWEB) July 29, 2014

New high priced hepatitis C drugs will increase federal spending in Medicare Part D by a projected $ 2.9 to $ 5.8 billion next year, according to a new report by the actuarial firm Milliman released today by the Pharmaceutical Care Management Association (PCMA). Milliman projects that average Part D premiums could increase by as much as 8.6 percent in 2015 as a result of high-priced hepatitis C drugs, including Sovaldi and Olysio.

The study finds that the majority of new Federal spending will come from increased federal reinsurance subsidies. Medicare payments for Part D catastrophic coverage have grown considerably faster than other components of Part D spending. According to the Medicare Payment Advisory Commission, between 2007 and 2012, payments have increased at an average annual rate of 14 percent while nearly doubling from $ 8 billion to $ 15.6 billion.

Milliman bases its cost projections on the assumption that 15 percent to 30 percent of the Medicare Part D population estimated to be infected with hepatitis C will receive an $ 84,000 course of treatment in 2015.

“While most payers cover about 75 percent of an enrollee’s prescription drug costs, Medicare Part D covers 95 percent at high spending levels,” said PCMA President and CEO Mark Merritt. “The study shows taxpayers will bear the lion’s share of the increased drug costs for Medicare Part D beneficiaries taking hepatitis C drugs.”

Click here to read the new report.

Major findings from the report include:


    New hepatitis C drugs, including Sovaldi and Olysio, will increase 2015 federal spending on Medicare Part D by $ 2.9 to $ 5.8 billion for beneficiaries enrolled in Medicare Prescription Drug Plans (PDPs), an increase of $ 100 to $ 200 per beneficiary per year.

    Average monthly premiums for Medicare PDPs are projected to increase 4.3 percent to 8.6 percent next year as a result of new hepatitis C drugs, an increase of $ 17 to $ 33 per beneficiary per year.

Milliman’s analysis measured the impact of these new drugs on the Medicare Part D program; the study did not include the effect of the drug therapy on other medical costs.







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medicare part b gap insurance ny state?

Question by nurit4: medicare part b gap insurance ny state?
I need a medicare part B gap insurance. I live in ny state.
Can anyone recommend a good and cheap gap insurance ?

Best answer:

Answer by Dr. Albert, DDS (UNITED STATES)
HELLO,

PART B COVERS WHAT PART A DOESN’T. THE LEFT OVER % CAN BE COVERED BY GAP INSURANCE, BUT THIS IS NOT CHEAP. SUPPLEMENTAL COVERAGE CAN BE GIVEN BY NUMEROUS AGENCIES. JUST DO A SEARCH AND ASK WHAT THEY COVER BECAUSE THEY MAY NOT OFFER ALL TYPES OF TREATMENTS OR THEY MAY LIMIT YOU TO THEIR PHYSICIANS AND OR SPECIALISTS.

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how do i enroll in medicare part b?

Question by Barb: how do i enroll in medicare part b?

Best answer:

Answer by Zarnev
You apply for Medicare at the social security office.

Be aware that if you are just coming off of a group policy with 20 or more employees you have 8 months to get on Part B without incurring a penalty. If you were on a group policy with less than 20 or if you didn’t sign up when you were first eligible you can only apply from January 1 to March 31 for a July 1 effective date. You will then have a penalty of 10% for each 12 month period you should have been on Part B but was not.

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