Medicare Advantage premiums in 2020 will decrease by 23% compared to 2018, the Centers for Medicare and Medicaid Services (CMS) announced Tuesday. This is good news for the over 24 million people expected to enroll in a Medicare Advantage plan for 2020 as the average monthly premium will be the lowest it has been in the past 13 years.
Why It Matters
As Medicare Advantage plans continue to be a popular option for many people, CMS has been working continuously to lower costs, and provide more benefits according to patients’ needs. The MA average monthly plan premium is expected to decrease by 14% from $26.87 in 2019 to approximately $23 in 2020. Since 2017, beneficiaries have saved about $2.65 billion in MA and Part D premium costs. Medicare Advantage plan beneficiaries, however, are not the only ones benefiting from reduced costs, as the projected average monthly Part D premium of $30 in 2020 is also the lowest it has been since 2013.
In a press release, CMS Administrator Seema Verma noted that reducing costs for beneficiaries “means that we are putting dollars back into the pockets of our seniors.” Over the past three years, this continuous decline in Medicare premiums has saved taxpayers approximately $6 billion through lower Medicare premium subsidies. The increase in plan choices and benefits and lower costs will mean more affordable options for patients to choose from this upcoming Open Enrollment.
More Healthcare News to Watch:
- CVS is releasing a new pharmacy solution tool that helps cut down the time it takes for patients to obtain specialty drugs. Fierce Healthcare.
- An AAM analysis shows that patients wait up to three years for access to new lower-priced generics of costly brands. Drug Store News.
- Last Friday, the FDA approved Novo Nordisk’s new oral diabetes drug. Reuters.
- Pharmacy schools maintain high standards despite the drop in the number of applicants. Drug Store News.
- According to a survey by Kaiser Health News, as health insurance costs rise, workers receiving lower wages pay a larger share. Kaiser Health News.