The Top 10 Medicare Prescription Drug Plan Providers

Medicare Prescription Drug Plans (PDPs)  are a type of health plan designed to provide prescription drug coverage for enrollees of Original Medicare, some Medicare Cost Plans, some Medicare Private-Fee-for-Service Plans, and Medicare Medical Savings Account Plans. PDPs are offered through private health insurers and other private companies that have been approved by Medicare.

In order to get coverage for their prescription costs, Medicare eligible individuals must either purchase a PDP or opt to get their Medicare coverage through a Medicare Advantage Plan (discussed in a previous commentary) that offers prescription drug benefits.

March 2015 data available from the Centers for Medicare and Medicaid Services (CMS) shows that close to 24 million Americans are now enrolled in Medicare Prescription Drug Plans.

Our compilation of the March 2015 CMS data yields this list of the Top 10 Medicare Prescription Drug Plan Providers:

The Top 10 Medicare Advantage Plan Insurers

Medicare Advantage plans are the increasingly popular type of health plan offered by private insurers as an alternative to original Medicare.  Private insurers contract with the federal government to provide Medicare Part A and Part B benefits coverage to Medicare beneficiaries in select regions of the country.  With a MA Plan, the government basically pays a stipulated amount to a private insurer to provide an enrollee with a health plan that, at a minimum, matches Original Medicare Part A and Part B benefits.  What gives Medicare Advantage plans their appeal is that private insurers have been able to bundle Part A and Part B benefits, plus a variety of extra benefits, into their plans at little to no premium cost to enrollees.

With typically lower costs and additional benefits, MA Plans can be a great value compared to Original Medicare.  Consequently, as we observed in this commentary last month, Medicare Advantage plans have seen strong growth over the past decade.  March 2015 data available from Centers for Medicare and Medicaid Services (CMS) shows over 17.3 million Americans are now enrolled in Medicare Advantage plans, up from 5.3 million in 2004.

Our number-crunching of the March 2015 CMS data yields this list of the Top 10 Medicare Advantage Plan Insurers:

These enrollment figures do not include Medicare Prescription Drug Plans (PDPs) available through private insurers as a supplement to Original Medicare.  Our next commentary will take a look at the top insurers providing Medicare Prescription Drug plans according to the March 2015 CMS data.