As the deadline for switching Medicare health plans approaches, time is running out for seniors to avoid higher drug costs by shopping for different coverage.
Premiums are up next year in Minnesota for many with Medicare drug coverage. Beneficiaries also are facing higher deductibles at the pharmacy with some plans, plus higher costs if they don't use designated drugstores.
Nationally, the federal government says big sticker prices for a few high-priced medications are adding significant sums to drug spending for Medicare beneficiaries overall.
The trends make stories like Peter Connolly's noteworthy. The St. Paul resident will transform a hefty jump in pharmacy coverage costs into a modest one by changing plans.
"I don't look forward to it, but I almost expect that every year that I'll be changing," Connolly said. "And seemingly every year, I do have to find new pharmacy coverage."
The annual open enrollment period for Medicare health plans ends Dec. 7. About 900,000 Minnesotans are covered by the federal health insurance program, with more than half relying on what are known as Part D benefits for their medications.
Seniors buy the coverage from private insurers, either as part of a comprehensive Medicare health plan or as a stand-alone policy that's paired with other coverage. Costs are subsidized by the federal government.
Taxpayer expenditures for the "catastrophic" portion of coverage in Part D plans are expected to rise by $4.5 billion in 2016, an increase of more than 14 percent, the Associated Press reported this month. Spending for catastrophic coverage in the program has grown from $15.5 billion in 2012 to an estimated $31.2 billion this year.