PDP Premiums for 2008

GreenSky

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Henderson, NV
Is it just me or have the premiums for PDP plans taken rather large increase for next next year?

I took a quick look and it seems that most of the $20-25 plans in 2007 are now in the mid $30 range.

Also, I could not find a plan that covers in the gap including brand.

Rick
 
I normally use the Medicare site for that, but it is not usually updated until the 15th or so.

Sierra Rx was the only PDP plan that had gap coverage that I knew of, and it had triple digit premiums.
 
If the government's own data indicate the average cost of a PDP for 2007 is $27.35, why wouldn't you expect more than that for 2008?:err:
 
Humana had the Complete plan in 2006 that had full gap coverage but lost their shirt on it and had only overpriced generic only coverage in the gap last year. Sierra's plan was $120 in LA last year and I believe had a somewhat limited formulary as well. That's so expensive that it's not worth it even for many who do hit the coverage gap, unless they're hitting in the first half of the year.

I'm surprised I haven't gotten more calls from enrollees who've hit the coverage gap.
 
"The estimated actual average premium for 2008 of roughly $25 for basic coverage is far below the original estimate for 2008 of $41, and is even below the most recent estimate of $27 from the 2008 Mid-Session Review. And, while the average expected premium for basic coverage in 2008 is higher than the actual average for 2007 (about $22), this is due primarily to technical adjustments required by law rather than increased bids. “Average plan bids remain very stable and continue to be lower than our expectations,” said Paul Spitalnic, Director of the Parts C and D Actuarial Group in the Office of the Actuary at CMS."
 
Part deau:

"In addition to releasing the premium information discussed above, CMS is announcing the 2008 “national average monthly bid,” which is $80.52; and the “base beneficiary premium,” which is $27.93 per month. These amounts are used to determine the Medicare premium subsidy to Part D drug plans, which will be $52.59 per month in 2008, down slightly from $53.08 in 2007."

Hey! If I sell a PDP for $28/mo, does this mean the carrier gets $80/mo to administer it? If this is the case, they net $52/mo.... they can surely afford a sales commission of one month's net.... after all, they keep the remaining 11 months for themselves ($572). One would think: "Thar's gold in them thar pills"!! What do you suppose the pharmacies bring into the mix?:skeptical:
 
Part deau:

"In addition to releasing the premium information discussed above, CMS is announcing the 2008 “national average monthly bid,” which is $80.52; and the “base beneficiary premium,” which is $27.93 per month. These amounts are used to determine the Medicare premium subsidy to Part D drug plans, which will be $52.59 per month in 2008, down slightly from $53.08 in 2007."

Hey! If I sell a PDP for $28/mo, does this mean the carrier gets $80/mo to administer it? If this is the case, they net $52/mo.... they can surely afford a sales commission of one month's net.... after all, they keep the remaining 11 months for themselves ($572). One would think: "Thar's gold in them thar pills"!! What do you suppose the pharmacies bring into the mix?:skeptical:

The pharmacies are really who gets the short end here. The big boys like Wal-Mart, Walgreens, CMS etc. get rebates from the drug cos. based on volume. But the independents hardly make any money at all from filling Part D. Judging from the reaction I got from one indep. pharmacist, apparently Humana is or at any rate was the worst.
 
I can currently sell humana pdp's but its not worth it for 30 bucks, I can get 70 from UHC and coventry I think but they are not usually in the top brackets.
Does anyone know of any other good prescription plans to offer along with med supps or MA plans that pay a decent commission?
 

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