MA-PDs comprises a growing share of overall Part D enrollment as more beneficiaries choose plans with integrated medical and drug benefits. Most Medicare Advantage enrollees (92%) are in Medicare Advantage plans that provide prescription drug coverage. By integrating prescription drug coverage with other Medicare benefits in one plan, MA-PD plans are able to coordinate care and manage costs across both the medical and drug benefits compared to PDPs.
Additionally, while the Part D program requires all plans to offer at least a minimum level of benefits, MA-PD plans are allowed to use a portion of their Medicare Advantage capitated payments to offer lower premiums, reduced cost-sharing, or coverage of more drugs, and supplemental benefits.
Despite the rising costs of prescription drugs, Part D plans have been able to offer stable premiums to beneficiaries since the program’s inception. While there have been significant changes made to the Part D program, there is also increasing interest in addressing the cost of prescription drugs, both in Part D and for drugs covered by Part B.