Medicare Part D premium lower than expected

The Centers for Medicaid and Medicare Services (CMS) announced this morning that the premium for participants in the new prescription drug benefit for Medicare will be significantly lower than expected. Officials said those signing up for the plan can expect to pay about $32.20 per month, about 15 percent less than earlier estimates. That will "make the benefit more attractive to more people," said CMS administrator Mark McClellan.

The decision is likely to be seen by critics as a reaction to tepid public response to the much discussed benefit, which is regarded as a core element of the Bush administration's healthcare policy. The news also means that the benefit itself will cost the government more to provide, a fact unlikely to comfort critics who say the costs of the program will probably soar over the long term. On the other hand, nothing is set in stone until CMS puts pen to paper and signs contracts with insurers in September.

- see this story from The New York Times

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