Medicare Part D

AARP Report Finds Brand Name Drug Prices Continue to Soar: According to a report released today by AARP, pharmaceutical companies have substantially raised prices on 220 brand name prescription drugs most commonly used by people in Medicare Part D since the implementation of the drug benefit in 2006. AARP has studied drug prices since 2002 and reported the findings in a series of Watchdog reports. Today’s report expands on the series by focusing its analysis on those brand prescription drugs most widely used by people enrolled in Medicare Part D.

The Watchdog report, which was produced by AARP’s Public Policy Institute (PPI), found that prices of brand name drugs most commonly used by people in Medicare Part D rose by an average of 7.4 percent in 2007 – nearly two and a half times the rate of general inflation. The report concludes that rising prices threaten consumers by increasing the likelihood of higher insurance premiums and the chance that people will fall into the Medicare coverage gap, and increasing the out-of-pocket expenses of those who find themselves in this “donut hole.”

SCHIP

From: National Center for Policy Analysis



The State Children’s Health Insurance Program (SCHIP), which covers 6.7 million children and adults, will expire in September. SCHIP consists of 50 different federal-state health plans for children (and in some states adults) in families that earn too much to qualify for Medicaid. Typically, families with incomes above the poverty level, but no more than 200 percent of poverty, are eligible.
The Senate Finance Committee recently voted to reauthorize the program. The Senate bill would expand eligibility to children in families with incomes up to 300 percent of the federal poverty level, or $62,000 for a family of four. House Democrats would raise income limits even higher — to 400 percent of the poverty level ($83,000 for a family of four) — well above the median income.…SCHIP expansion would be costly. The Senate bill would increase spending by $35 billion over five years and the House Democrats would increase spending by more than $50 billion. However, the additional money would mainly buy insurance for children who are already insured. In fact, the families of millions of children currently in SCHIP would have otherwise had private coverage, and most of the children that would be newly eligible already have private coverage. Furthermore, the cost of expansion would be borne by poor families and seniors.

http://www.ncpa.org/pub/ba/ba589

Health Insurance Costs

From the California Healthcare Foundation:

Employer Health Insurance Costs in the United States
Key findings include:
• While wages and salaries increased by 39 percent between 1996 and 2005, health insurance costs to employers rose 97 percent.
• At offering businesses, the share of total compensation paid as health insurance rose from 6 to 8 percent from 1996 to 2005. As health insurance costs increased, the share of compensation paid as wages fell.
• Of those businesses that offered insurance, costs relative to payroll increased 34 percent between 1996 and 2005.
• Premium contributions as a share of payroll were highest for unionized businesses, businesses with a high share of full-time workers, and low-wage businesses.
• Although the increase in health insurance costs was similar across businesses, increases were highest for low-wage businesses. This may be due in part to the fact that compensation for high-wage businesses has increased substantially, while for low-wage businesses it has been stagnant.