If you are a Medicare beneficiary and have a chronic medical condition that requires a brand name drug you’ve probably seen the price of that drug rise dramatically in the past year.  A new report from AARP confirms that brand name drug prices are rising faster than than prices on other goods and services we buy.

AARP estimates that for the past 12 month period there has been a 9.7% jump in manufacturer prices for brand name drugs widely used by people on Medicare. At the same time, general inflation has been flat.

That’s one of the reasons that people with Part D Medicare Prescription Drug coverage find themselves entering the “doughnut hole” this time of year where they begin paying the full cost of their drugs.  Those who take specialty drugs – which can cost between $1000 to $20,000 per month have seen prices increase 9.2% in the same time period.

The only bright spot in drug pricing has been generic drugs where prices have dropped 9.7% for medications widely used by those in Medicare.  The average annual costs of therapy for someone taking three generic drugs decreased $51 compared to the $706 increase by a person taking three brand name prescriptions.  Here’s the full AARP report.

It’s a good reminder to talk with your doctor about whether or not the drug being prescribed is available in generic form.  It could mean thousands of dollars per year in savings. 

And if you are turning 65 and deciding whether to purchase prescription drug coverage, it’s a good reminder of how much of a bite medication can take out of your budget.  As you shop for Medicare coverage, remember that a Medicare supplement plan does not provide drug coverage.  You’ll need to purchase a separate Part D policy.  If you are considering a Medicare Advantage plan, find out whether or not it includes coverage for prescription drugs.

 Longevity Alliance provides more tips on how to cut health care costs in this brochure.

 If you have a Medicare Part D prescription drug plan and will soon be dropping into the donut hole where you will be paying the full cost of your medications, there’s good news coming.

Starting on June 15th, seniors who have hit the prescription drug donut hole will get a $250 rebate check to help them afford their medicines this year.  No details yet on how the rebate program will work. 

The rebate check is part of the newly passed health care reform bill.  The bill calls for a $250 rebate check for those in the donut hole this year.  Next year, the donut hole begins to be phased out. In 2011, beneficiaries in the gap will be able to get a 50 percent discount on brand-name drugs. By 2020, the gap will be eliminated.  (see details in this MomentumToday article) 

Kathleen Sebelius, secretary of the Department of Health and Human Services, announced the date in a speech earlier this week outlining some of the provisions of the health care reform bill that will soon go into effect. 

She also said, “During these early years of implementation, we’ll also be working with doctors across the country to turn Medicare into a quality-driven, high-value health care purchaser.  When seniors walk into a hospital or doctor’s office, they should get the best care possible each and every time.  And as the world’s largest insurance program, Medicare has a lot of clout when it leads by example.  History has shown that if Medicare can find smarter ways to pay for care, other insurers will copy them, and we’ll all get better results.”

Where is the worst place to keep your medicine?

In the medicine cabinet in the bathroom where it can be impacted by steam and humidity.  Or anyplace where it is out of sight and out of mind so you forget to take it. 

These tips and more are good reminders of the importance of managing our medicines.

You’ll find them in a new brochure “Prescription Drug Options for Older Adults:  Managing Your Medicines “from Eldercare Locator and Consumers Union.

For example, the brochure highlights the importance of keeping a medicine record and what information to record.  If you’ve recently shopped for a Part D prescription Drug plan you know how helpful having this information in one place can be.

 If you are caring for an older adult, the medicine record is a great item to take to each doctor’s visit, especially if you are concerned about drug interactions or wondering if there is a less expensive drug option.(check the formulary –list of drugs- covered by your prescription drug plan.  

There are some practical tips about setting timers for when to take drugs. You can use a simple alarm.  Or there are all sorts of medicine organizers and reminders on the market, including services that will call with a reminder phone call. Just Google “medication reminders” and you’ll find plenty of choices at all sorts of price points.

If you are helping an older adult with their medications, you might find it helpful to download a copy (or order a printed copy) for them to read.  Sometimes reading over tips from experts can make all the difference in changing behavior.