The Centers for Medicare & Medicaid Services (CMS) recently released premium and cost-sharing information for Part D plans for the 2020 calendar year. Below are the highlights of a preliminary analysis.
The 2020 Medicare Part D premiums are falling…and rising.
- Based on a forecast by CMS in July, it is expected there will be a 13% decrease in the average PDP premium from $47.21 in 2019 to $40.90 in 2020.
- Roughly 58% of all Medicare Part D beneficiaries currently enrolled in a stand-alone 2019 PDP will see an increase in their 2020 monthly premium — unless they change coverage to a more affordable 2020 PDP or MAPD
Here are the lowest and highest premium stand-alone PDP’s:
- The California Clear Spring Health Premier Rx (PDP) will have the lowest 2020 Part D premium of $12.80.
- In two other states, Arizona and Wisconsin, the WellCare Wellness Rx (PDP) will have the lowest monthly premium ($13.10).
- In all other states across the country, the new Humana Walmart Value Rx Plan (PDP) will have the lowest monthly premium of $13.20.
- The 2020 Medicare Part D plan with the most expensive premium will be the BlueCross Rx Plus (PDP) in South Carolina at $191.40 per month.
There are more stand-alone Medicare Part D plan options in most states.
- Stand-alone 2020 PDP plans will increase to 948 plans nationwide (compared to 901 plans offered in 2019).
- New York will have the largest gain of PDPs with 4 additional plan choices; most other states will have 1-3 additional PDP options
- Connecticut, Massachusetts, Rhode Island, Vermont, and New Mexico will find slightly fewer PDP options in 2020.
More 2020 Medicare Part D plans to qualify for the LIS $0 premium
- Most states will have the same or more 2020 Medicare Part D plans qualifying for the state’s Low-Income Subsidy (LIS) $0 benchmark premium.
- The state offering the smallest selection of $0 premium LIS PDPs is Ohio, offering only two. Arizona will offer twelve $0 premium LIS plans.
The Donut Hole will close in 2020.
- The 2020 Donut Hole discount will increase to a 75% discount for all formulary medications (meaning the client pays 25% of retail for both brand-name and generic formulary medications purchased while in the Coverage Gap).
- But fewer 2020 PDP’s will offer additional Donut Hole coverage. About 20% of all stand-alone 2020 Part D plans offer some level of gap coverage.
Also, Some 2020 Medicare Part D plans are changing names or carriers.
- The 2019 Humana Walmart Rx Plan (PDP) will become the 2020 Humana Premier Rx Plan.
- A new 2020 Humana Walmart Value Rx Plan (PDP) will be introduced.
- The 2019 Aetna Medicare Rx Value Plus (PDP) plan will become the 2020 WellCare Medicare Rx Value Plus (PDP).