The private plans that offer the Medicare Part D benefit – stand-alone drug plans and Medicare Advantage drug plans – are increasingly are competing on uneven terms, in part because the payment system for Medicare Advantage plans enables them to lower Part D premiums or reduce Part D cost sharing, making drug coverage from Medicare Advantage plans appear considerably cheaper, or even premium-free, to the beneficiary. This brief discusses the growing instability of the Part D stand-alone drug plan market and how the Medicare Advantage payment system makes it harder to maintain competitive and affordable options in the PDP market.
How Medicare Advantage Rebates Disadvantage Medicare’s Stand-Alone Drug Plan Market
