WASHINGTON, July 24,
2024 /PRNewswire/ -- Today, the National Hispanic
Council on Aging released an analysis from Avalere which found
that the Inflation Reduction Act (IRA) has sped up the erosion of
the low-income subsidy (LIS) plans offered under Medicare Part D,
leading to the largest decrease to date in zero-dollar premium
plans available for low-income seniors and individuals with
disabilities.
The LIS program allows Medicare beneficiaries with limited
incomes and assets, defined as an income of about $22,500 in 2024 for a single individual and about
$30,500 for a couple, to enroll in
zero-dollar premium Part D plans known as "benchmark plans" to help
them access their medicines.
According to the Avalere analysis, which was commissioned by the
National Hispanic Council on Aging, the number of these LIS plans
with zero-dollar premiums decreased by over one-third in the past
year. As a result, more than 1 million more low-income seniors and
people with disabilities are now paying premiums, amounting to more
than half of all LIS enrollees in 2024.
"It's alarming that Part D plans that are premium-free to Part D
enrollees receiving the low-income subsidy are disappearing," said
Dr. Yanira Cruz, president and CEO
of the National Hispanic Council on Aging. "Nearly 13 million
Americans count on the Low-Income Subsidy Program to furnish them
with affordable drug coverage. The Centers for Medicare &
Medicaid Services (CMS) must ensure that implementation of the IRA
does not contribute to low-income beneficiaries losing access to
low-cost, zero-premium drug plans."
Avalere investigated the availability of zero-dollar premium
plans -- and found that the number of plan options has been
declining. The number of benchmark plans decreased by 15% on
average between 2020 and 2024, but fell 34% between 2023 and
2024.
The dwindling availability of zero-dollar premium plans may have
negative consequences for public health, given that older,
low-income adults are more likely to have health problems that
could be managed with medication, including diabetes and heart
disease.
The decline of zero-dollar premium plans has hit beneficiaries
from marginalized communities particularly hard. One in five Black
beneficiaries and about one in six Hispanic beneficiaries rely on
the program for drug coverage.
In recent years, changes in the landscape and availability of
plans, broader Medicare enrollment patterns, and other policy rules
have shifted enrollment patterns of LIS enrollees. More recent
policy and market changes have led to fewer LIS benchmark options
in 2024 and more LIS enrollees paying premiums for their Part D
coverage. As the most significant Inflation Reduction Act Part D
benefit changes go into effect in 2025, the potential for even
larger changes in plan offerings and enrollment are likely to have
important access and affordability implications for LIS
enrollees.
"Millions of Americans are only able to access life-saving
medication because of the Low-Income Subsidy Program," Dr.
Cruz said. " CMS has a responsibility to ensure the most
vulnerable beneficiaries have access to their vital medications.
They must not be collateral damage in the IRA's transformation of
the Part D program."
To schedule an interview with Dr. Yanira
Cruz, president and CEO of the National Hispanic Council on
Aging, please contact Ava Noack at
202-796-5112 or 380821@email4pr.com.
About the National Hispanic Council on Aging
The
National Hispanic Council on Aging (NHCOA) is the leading national
organization working to improve the lives of Hispanic older adults,
their families and caregivers. For more information, visit
nhcoa.org.
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content:https://www.prnewswire.com/news-releases/new-study-medicare-part-d-low-income-subsidy-plans-are-eroding-with-more-than-half-of-enrollees-paying-premiums-today-302205658.html
SOURCE National Hispanic Council on Aging