Medicare prescription premiums won’t rise in 2012

The Obama administration had good news for seniors today: The average monthly premium for Medicare’s popular prescription program won’t go up next year. Many seniors may even see a dip in their costs, particularly if they shop around during open enrollment season this fall. Officials credited growing use of generics and competition within the program, which is delivered through private insurance companies. Medicare also expects to share in a coming bonanza as a number of top-selling brand-name drugs get generic competition in the next year or so. The Department of Health and Human Services projects the average premium for 2012 will be about $30 a month, hardly changed from $30.76 this year. Since the 2012 estimate is an average, it does not reflect premiums for every individual. Some seniors may see an increase. But they will have options. Plenty of bargains should be available during open enrollment season. Officials also said 900,000 Medicare beneficiaries with high drug costs have received a 50% discount on brand-name drugs this year, a benefit of Obama’s health care law. That number will keep growing throughout the year as more people fall into the coverage gap known as the doughnut hole. The health care law gradually closes the gap.