Medicare officials predict lower 2009 Part D costs than expected

WASHINGTON Monthly premiums for Medicare’s Part D prescription drug program next year will be lower than expected, Medicare officials announced Thursday.

Based on bids submitted by Part D plans, the Centers for Medicare & Medicaid Services estimated that the average monthly premium that recipients will pay for standard Part D coverage will be $28 – lower than the $44.12 predicted in 2003.

At the same time, it is $3 more than the premium for this year, mainly because of rising drug costs and higher plan estimates for catastrophic coverage and the phase-out of a CMS demonstration project.