According to new research from the USC Schaeffer Center for Health Policy and Economics, expected out of-pocket costs for commonly prescribed brand-name medications have grown substantially for Medicare Part D beneficiaries as drug plans increasingly tie patient costs to list prices. The study was published in JAMA.

The share of stand-alone Part D prescription drug plans using coinsurance, rather than a copay, for preferred branded drugs sharply increased from 9.9% in 2020 to 71.9% in 2024, researchers found. By comparison, fewer than 5% of drug plans offered through more comprehensive Medicare Advantage coverage used coinsurance for preferred branded drugs last year.

As a result, Medicare beneficiaries in stand-alone drug plans, which account for 43% of the Part D market, are increasingly exposed to rising list prices.

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