(Reuters) – CVS Health (NYSE:) and Cigna (NYSE:) on Tuesday released details on their government-backed health insurance plans for next year for people aged 65 and above, saying some members would pay $0 premium monthly for prescription drugs.
The announcements come ahead of the beginning of enrollment for Medicare Advantage plans on October 15, which will continue through December 7.
Medicare Advantage plans are offered by private insurers who are paid a set rate by the government to manage the healthcare of older Americans looking for extra benefits not covered in regular Medicare coverage.
Cigna said it will offer some prescription drug plans with low premiums that will help save costs.
CVS’ health insurance unit Aetna estimates 83% of Medicare-eligible beneficiaries in the United States will have access to a $0 monthly premium plan.
Both Cigna and CVS will also offer special needs plans, where individuals are enrolled under Medicare and receive assistance from Medicaid that covers medical expenses for people with low income.
The companies will also offer dental, hearing and vision coverage.
Medicare Advantage plan enrollment is projected to grow to 35.7 million people in 2025, the Centers for Medicare and Medicaid Services said on Friday.
