Medicare turns 55, and now’s the time to look at Part D – did it work?

On July 30, 1965, President Lyndon B. Johnson signed into law legislation that established the Medicare and Medicaid programs.  The Part D prescription drug benefit was implemented in 2006, providing affordable prescription drug coverage to seniors and individuals living with disabilities.  You might be surprised to learn that the unique, market-based structure of the program helped to promote private-sector competition and keep overall program costs far below initial projections, coming in at nearly $350 billion less than the Congressional Budget Office’s initial 10-year estimate.

Some more Part D facts:

• 45 million American enrollees
• 900 stand-alone prescription drug plans from which to choose
• 3.3 year increase in life expectancy for Medicare beneficiaries since the implementation of Part D benefit
• $39.63 weighted average monthly premium, and premiums have been consistently stable

PhRMA will continue to share insights on Medicare Part D, and you can follow real-time updates here:  PhRMA.org/PartD.