tci Medicare Compliance & Reimbursement - 2006 Issue 8

Payments: Drug Plan May Ring In Below Cost Estimates

Early projections hint at plan's success but rankle skeptics.Good news about the Medicare drug plan has been hard to come by--and harder yet to believe.Due to "stronger than expected" competition in the prescription drug market, increasing use of generics and lower overall drug costs, Part D coverage will have "significantly lower premiums and lower costs to federal taxpayers and states," Centers for Medicare & Medicaid Services Administrator Mark McClellan announced at a Feb. 2 hearing with the Senate Special Committee On Aging.Beneficiaries can now expect to pay $25 per month on average--nearly one-third less than...

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