The Centers for Medicare and Medicaid Services (CMS) recently
released a preview of the 2020 stand-alone Medicare Part D prescription drug plans (
PDPs) and our preliminary analysis supports the CMS findings that Medicare beneficiaries will have more 2020 Medicare Part D PDP options with lower overall monthly premiums.
However, as was true in past years, many current plan members will pay slightly higher monthly PDP premiums next year unless they move to a lower-premium 2020 Medicare Part D or Medicare Advantage plan.
You can go to
PDP-Facts.com for an overview of the
national 2020 Medicare Part D landscape -- or choose your state for PDP details on a state-level.
To help you review the 2020 stand-alone drug plan data in more detail, the Q1Medicare 2020 PDP Plan Finder (
PDP-Finder.com/2020) is also online.
As a reminder, this 2020 PDP data was compiled earlier in September and
is subject to CMS change as the Medicare plan contracts are finalized. Also, we will be adding plan cost-sharing, formulary data, and quality star-ratings as this information is released.
Changes in the 2020 stand-alone Medicare Part D landscape include:
- There will be more 2020 stand-alone Medicare Part D prescription drug plan (PDP) options.
The number of 2020 stand-alone Medicare Part D plans across
the country will increase to 948 PDPs - from 901 plans in 2019. The average number of Medicare Part D plans available in each state will increase to 28 and California will offer the most Medicare Part D plan choices (32).
- The average 2020 stand-alone Medicare Part D
premium will decrease.
In late-July, CMS forecasted a decline in the Part D combined (PDP & MAPD) average premium. Our analysis of the 2020 stand-alone Medicare Part D plans (PDP only) follows the CMS forecast showing a 13% decrease in the average PDP premium. Our analysis also found a significant increase in the number of PDPs with a premium under $25. The lowest 2020 stand-alone Medicare Part D premium is $12.80 (in California) and the highest monthly premium is $191.40 (in South Carolina).
- However, 2020 Part D plan premiums will increase for current members.
Although the average
Part D premium is decreasing 13%, about 58% of people currently enrolled in a
Medicare Part D plan will see a premium increase, if they stay with their
current plan next year. Therefore, many people should be able to find a
lower-premium Medicare Part D plan or Medicare Advantage plan for 2020. You can see how each 2019
Medicare Part D plan will change their benefits in 2020 at PDP-Compare.com/2020.
- More Medicare PDPs will have an Initial Deductible.
Far fewer 2020 drug plans will offer a $0 deductible. However, a higher percentage of 2020 stand-alone Medicare Part D plans will offer enhanced design features such as an Initial Deductible below the 2020 standard Initial Deductible of $435 (for example: $100, $250, $335, or $395).
- More $0 premium LIS plans available in 2020.
More Medicare Part D plans qualifying for the $0 LIS benchmark premium will be available in 2020. In 2019 there were 215 LIS $0 plans across the country and in 2020 this number will increase to 244. However, some states (such as Ohio) will see a decrease in LIS-qualifying Medicare Part D plans.
- Changes in Medicare Part D plans due to plan mergers and changes.
As in past years, some Medicare Part D plans will be merged into other plans or plan Members will be "cross-walked" into other Medicare Part D plans. For example, 2019 Aetna Medicare Part D plan members may be moved to 2020 WellCare plans .
As a reminder!
The Annual Enrollment Period (AEP) for Medicare Part D plans and Medicare Advantage plans begins on October 15th and continues through December 7th – with new Medicare plan coverage beginning on January 1st. Starting October 1st, you can telephone Medicare at 1-800-633-4227 to learn more about your 2020 Medicare Part D and Medicare Advantage plan options.
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Copyright Q1Group LLC, Saint Augustine, Florida (2019)
Sources include:
https://www.cms.gov/newsroom/press-releases/trump-administration-drives-down-medicare-advantage-and-part-d-premiums-seniors