Medicare Drug Spending Drops $6B
Posted on: Friday, 31 October 2008, 15:00 CDT
U.S. Medicare prescription drug spending fell $6 billion to $44 billion this year due to a widespread use of low-cost generic drugs, the government said.
Another reason is that 2 million fewer participants than originally forecast participate in the program, the U.S. Department of Health and Human Services' Centers for Medicare and Medicaid Services said.
Some senior citizens decided to keep existing drug coverage, Medicare said. In addition, fewer poor people enrolled than expected.
A benefit to the 32 million participating seniors: Their monthly premium for basic drug coverage was an average $26.70 in 2008 -- a third less than forecast, Medicare said.
"The program's been a success," David Certner, legislative policy director for the AARP senior advocacy group, told USA Today.
"After the initial confusion at the launch, it started delivering many benefits people need," he said.
The drug plan was the most expensive new federal program since the 1960s, until the current financial bailout, USA Today said.
Medicare drug costs are expected to rise again next year as early savings fade, the newspaper said.
The first of 79 million baby boomers start entering the program in 2011.
Source: United Press International
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