According to the U.S. health-care program, elderly enrolled under Part D prescription-drug plan of Medicare will pay premium $28 per month in year 2009. The present premium has been increased by $3.

According to statistics, 25.4 million Americans have drug coverage through Medicare, 17.7 million of them in standalone plans and 7.7 million in Medicare Advantage plans that provide health care through private insurers.

The Centers for Medicare and Medicaid Services explained that the present 12 percent premium increase has been done due to rising drug costs, higher estimates of costs for catastrophic drug coverage, and the end of a demonstration project. Authorities added that these beneficiaries pay only one-fourth of the basic prescription plans while the rest is paid by government.

Authorities further added that Medicare will spend about $36 billion this year to subsidize drug coverage. The new estimates were based on bids submitted by companies that receive government subsidies to offer the plans.

Paul Spitalnic of the Medicare agency's office of actuaries said, "Average plan bids have increased at roughly the same rate as drug costs."

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