by Douglas Holtz-Eakin, Angela Boothe
American Action Forum
February 06, 2014
Medicare Part D was created by the Medicare Prescription Drug Improvement and Modernization Act of 2003 to provide affordable prescription drug insurance coverage with a variety of benefit levels and premium costs. Part D has developed a track record of competition among plans for seniors’ business, controlled premium and budget costs, and excellent access and quality. However, regulations proposed by the Centers for Medicare and Medicaid Services (CMS) in January 2014 will mean that an estimated 14 million seniors could lose their current plan, beneficiaries could see premium increases of up to 21 percent, and the changes could cost the Part D program up to $10 billion over the next ten years. This paper details the current success of the program and the likely impact of the fundamental restructuring hidden within the new CMS regulation.