In an analysis of Medicare drug benefits, a study by Mathematica Policy Research, Inc., for the Kaiser Family Foundation found that drug coverage provided by Medicare Advantage plans had lower premiums and deductibles than stand-alone prescription drug plans. Medicare beneficiaries who choose a Medicare Advantage plan receive a drug benefit in addition to Medicare Part A and B and supplemental coverage. The average premium for the stand-alone drug program is $37/month compared with an average premium of $18 for all Medicare Advantage plans, which include HMOs, PPOs, and private fee-for-service plans. The lowest-cost stand-alone drug plan carries a $29/month premium, but the lowest-cost Medicare Advantage HMO charges $10/month for drug coverage. And 49% of Medicare Advantage HMOs charge no additional premium for a drug benefit. In addition, 79% of all Medicare Advantage plans have no deductible for prescription drugs, but 72% have maintained the “donut-hole” gap in coverage where beneficiaries are responsible for 100% of drug costs above a certain threshold. Download the study.
