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Medicare Drug Costs Drop Substantially

Armen Hareyan's picture

Medicare Drug Plans

Medicare's new drug coverage will have significantly lower premiums and lower costs to federal taxpayers and states, as a result of stronger than expected competition in the prescription drug market and lower drug costs, CMS Administrator Mark B. McClellan, M.D., Ph.D, announced Thursday.

Beneficiary premiums are now expected to average $25 a month - down from the $37 projected in last July's budget estimates - and the overall cost to taxpayers for 2006 will drop 20 percent over the July 2005 estimate, according to the CMS Office of the Actuary.