Part D premiums for 2008 to be lower than anticipated

August 22, 2007

The 2008 premium is $16 less than the $41 estimate CMS provided when the benefit was first established, and $2 less than its most recent projection.

Next year's average beneficiary premium for standard Medicare Part D coverage is roughly $25, a figure that is 40% lower than the original 2003 estimate, CMS reports. The 2008 premium is $16 less than the $41 estimate CMS provided when the benefit was first established, and $2 less than its most recent projection. Next year's premium is slightly higher than the 2007 price of $22, but CMS officials attribute the slight increase to "technical adjustments required by law." "Average plan bids remain very stable and continue to be lower than our expectations," said Paul Spitalnic, director of the Parts C and D Actuarial Group in the Office of the Actuary at CMS.

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