Seniors wasting money on drugs because they won't switch Medicare plans

Seniors don't like change. But that reluctance to change could be costing them hundreds of dollars each year because they don't take the time each year to research the best drug plan. In fact, according to the Centers for Medicare and Medicaid Services, only about 7% of the 17 million seniors on Medicare drug plans switch plans each year.

Why is it so critical to at least research the best option each year? Insurers know seniors are reluctant to switch. Many started their plans with teaser rates the first year or two of the Medicare Part D plans (that's the drug coverage portion of Medicare) and then quickly jacked up the prices. For example, the most popular plan, with 17.8% of Medicare recipients enrolled, is AARP's Medicare Rx Preferred, which raised its average monthly premiums 50% from $26.31 in 2006, the first year, to a monthly premium of $39.39 in 2010.