Facebook Twitter LinkedIn Instagram Email Printer Google Plus
Maximize Value Infographics February 25, 2015

Slide Show: Extreme Price Sensitivity Defines Medicare Part D Landscape

Global Head, Health Services, Oliver Wyman

Smaller health plans trying to compete on Medicare Part D are finding the deck stacked against them. One of the biggest challenges is the extreme price sensitivity of the Prescription Drug Plan (PDP) market, as illustrated by the slide below from Oliver Wyman’s new report “The Part D Dilemma.” The analysis by our government programs team shows that in June 2014, half of individual PDP enrollees belonged to plans with a monthly premium below $40. And 80 percent of the Medicare age-ins who selected individual PDP plans in the first six months of 2014 chose plans with monthly premiums below $30. This trend is exacerbated among Basic plan enrollees and as a result of federal rules that create strong incentives to maintain low premiums. “It should be no surprise that the PDP marketplace is competitive,” notes team leader Jim Fields. “Congress designed it that way.” Learn more here.

Insights in your inbox

Subscribe