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.