U.S. says Medicare drug premiums flat for 2007

WASHINGTON (Reuters) - The average premium that Medicare patients must pay for prescription drug coverage will remain about $24 a month in 2007, U.S. officials said on Tuesday.

All of the companies that provided plans for 2006 will continue to offer coverage for 2007, although some have modified their choices, officials at the Centers for Medicare & Medicaid Services (CMS) said. Companies that sell coverage include Aetna Inc., Cigna Corp. and UnitedHealth Group Inc.

CMS Administrator Mark McClellan said that competition to attract patients plus the choice of low-cost plans by most patients helped keep costs down. Drug plan bids to offer coverage were 10 percent lower for 2007 than 2006, he said.

Medicare provides health insurance for about 42 million elderly and disabled Americans. Enrolling in prescription drug coverage is optional.

Patients can sign up for coverage or change plans during an open enrollment period that starts in November.