A vast majority of seniors enrolled in Medicare’s prescription drug program will see double-digit rate hikes in 2011, according to an independent analysis released Thursday.

Avalere Health, a Washington-based policy group, estimates the average monthly premium for Part D’s top 10 plans — which cover roughly 70 percent of all Part D enrollees — will jump 10 percent in 2011.

“Some major plans are no longer being offered and premiums for certain plans have increased significantly,” Avalere CEO Dan Mendelson said in a statement. “Beneficiaries are going to need to be savvy consumers and shop around to find the plan that’s best for them.”

Of the top 10 drug plans catering to Medicare patients, seven are projected to increase their premiums next year between 43 and 3 percent, Avalere estimates. The remaining three plans — including the top plan by enrollment, AARP’s MedicareRx Preferred — Avalere says will decrease rates, between 11 and 2 percent.

Two of the top 10 stand-alone drug plans — AARP’s MedicareRx Saver and Universal American’s PrescribaRX Bronze — are not being offered next year at all, shifting those patients (automatically) into different plans offered by the same sponsors, Avalere notes.  Those plans were the 2nd and 9th most popular, respectively, among seniors this year, the group says.

http://thehill.com/blogs/healthwatch/medicare/120635-report-drug-costs-for-seniors-to-skyrocket-next-year

PPACA Section 9003 creates Internal Revenue Code Section 106(f). The new section will require users of health flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs) to get prescriptions before using health account funds to pay for over-the-counter (OTC) drugs other than insulin.

Section 9003 also will require holders of health savings accounts (HSAs) and Archer Medical Savings Accounts (Archer MSAs) to get prescriptions if they want to use account funds to buy OTC drugs. HSA and MSA holders who use account funds to buy OTC drugs without a prescription will have to include the expenditures in gross income and pay an additional 20% tax, officials say.

Health account holders can still use account funds to buy crutches, bandages, diagnostic devices and insulin without a prescription, officials say.

The new rules are set to take effect Jan. 1, 2011.

Holders of HSAs and Archer MSAs are responsible for substantiating use of account assets themselves, but employers and card providers are supposed to help