Premiums for many Medicare Part D prescription drug plans will increase at double-digit rates in 2016, according to The Fiscal Times.
Premiums for the 10 most popular Medicare Part D plans — which cover 80 percent of enrollees — will jump by an average of 8 percent next year, the greatest rate of growth in five years, Avalere Health research found. Five of the top plans will grow their average premiums between 16 and 26 percent.
Average premiums for a basic Part D plan will stay stable next year at $32.50 per month, Avalere Health found. Basic plans have a "donut hole," or a gap in coverage, where the beneficiary is responsible for the cost of drugs after reaching a cap. In 2016, the gap starts when an individual and his or her insurance company has spent a combined $3,310, and coverage resumes when total spending reaches $4,850.
The substantial premium increases are expected to motivate enrollees to shop for a new prescription drug plan during the enrollment. Seniors were informed of the premium hikes in the annual notices plan providers are required to send to enrollees by Sept. 30 each year, before the start of the fall open enrollment period.