Medicare Part D: A First Look at Plan Offerings in 2014

The Centers for Medicare & Medicaid Services (CMS) recently released information about the Medicare Part D stand-alone prescription drug plans (PDPs) that will be available in 2014.1   Of the 36 million beneficiaries enrolled in Part D plans, about 63 percent (22.7 million) are in PDPs; the others are enrolled in Medicare Advantage drug plans.2   This Medicare Part D Spotlight provides an overview of the 2014 stand-alone PDP options and key changes from prior years.3

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Summary of Key Findings

Medicare Part D continues to be a marketplace with an array of competing plans offered at a wide range of premiums and benefit designs.

  • In 2014, Medicare beneficiaries will have a choice of 35 stand-alone PDPs, on average, up by four from 2013.  The average premium (weighted by enrollment) is expected to increase by 5 percent across all PDPs from 2013 to 2014 unless many new or current enrollees select lower-priced plans.  As in prior years, the average monthly premium for 2014 masks a significant amount of variation across plans.  Enrollees in two of the most popular PDPs will experience 50-percent premium increases if they stay in the same plans in 2014, while enrollees in three other popular PDPs will see lower premiums. Read more