Medicare Part B Premiums May Increase Due To Expensive Alzheimer’s Drug

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We are all thrilled that a new drug has been approved by the Food & Drug Administration (FDA) to treat Alzheimer’s disease.  It has been over a decade since a new drug has been introduced to treat this horrible condition.   As regular readers of my blog know, both my father and my grandmother had Alzheimer’s disease when they passed away.  I asked Nana when she was 94 if she knew who I was and she looked at me for several minutes trying to come up with a name.  Finally, she said, “I don’t know who you are but I know that you love me.â€Â  On the bad news side of the equation of Leqembi is that it’s very expensive and could drive up Medicare Part B premiums by almost $10/month in 2024.   The drug will be the third most costly drug covered by Medicare Part B, according to the non-profit health researcher KFF.  Another estimate from a non-partisan seniors group The Senior Citizens League, estimates that the drug will add $5/month to the tab for everyone who has Medicare Part B.

There was a 15% increase in premiums in 2022 when another Alzheimer’s drug, Aduhelm, was approved by the FTC and hit the market.  The Senior Citizens League has projected a 3.0% cost of living, or COLA, in 2024, and a Part B premium increase of 8.7%.  Medicare is estimated to cost about $5K/year to Medicare recipients who take the new drug, with $26,500 the government paying the balance of the treatment, according to KFF.

Medicare Part B Bills To Decline 3% Next Year

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For the first time in a decade, Americans will be paying less next year for Medicare Part B.  The 3% decrease in premiums (a savings of $5.20 per month for most people) comes after a tough year with extremely high inflation.  “To millions of seniors and people with disabilities on Medicare, that means more money in their pockets while still getting the care they need,†President Biden said.

 

Medicare Part B Patients Should Get A Premium Rebate

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Advocates for participants in Medicare Part B such as AARP are arguing that they should be seeing a premium rebate this year, although it’s unlikely that this will happen.  The reason:  the fund has a large surplus after adding on $21.60/month, a record price increase.  It’s estimated that roughly $10/month to cover the cost of the new Alzheimer’s drug Aduhelm.  The annual cost of the drug was $28,200 but the Centers for Medicare and Medicaid Services (CMS) refused to cover it even though it received FDA approval and the drug was pulled from the market.  “It is unconscionable for a single outrageously priced drug to drive up premiums for all Medicare beneficiaries,†sadid Nancy LeaMond, AARP chief advocacy and engagement officer.  She ways savings from Aduhelm should be swiftly returned to Medicare Part B users.