Good news on Medicare costs

By Jim Stergios
August 15th, 2008

From Grace-Marie Turner of the Galen Institute gives the good word on Medicare costs:

The Centers for Medicare and Medicaid Services reported yesterday that average beneficiary premiums for the standard Medicare drug benefit will increase by just $3 a month in 2009, to $28. That is 37% lower than the $44 a month that legislators estimated seniors would pay this year when the Medicare Modernization Act was enacted in 2003.

Based upon bids received for the upcoming open season, CMS says 97% of beneficiaries could avoid any premium increase in 2009 by enrolling in a less expensive drug plan in their region.

And the drug benefit, based upon consumer choice and competition, also is costing taxpayers less than expected: CMS says it will cost $46.4 billion in 2009 vs. $74 billion that had been estimated for this year.

Competition works, even inside a public program, to give people more choices and keep costs down.