There are tremendous changes coming to Medicare in 2025. These changes will be seen in the new plans that are being released in October.
These changes stem from the Inflation Reduction Act that was signed into law in '22.
The Federal Government has reduced funding to Medicare.
The government will now be paying less for prescription drugs & is shifting the cost to the carriers (insurance companies). The funding cuts will have to be made up in some way by the carriers (so they can remain solvent), so we are anticipating fewer benefits & possibly higher pricing.
The government is also making every carrier offer a program in which people can pick up their prescriptions at the pharmacy for $0 & then make monthly payments to the carriers for their prescriptions.
The carriers are still trying to figure out what that will look like on their side, because it's so far outside the realm of what they do or anything they have ever done.
The carriers will probably have to qualify individuals who want to participate in that plan.
The other factor contributing to the changes we'll see in Medicare is the new $2,ooo Maximum Out of Pocket cap on prescription drugs.
On the surface, a cap of $2,000 sounds great. The reality is that capping the price at a substantially lower price than we've seen in the past will have the same effect as displacing water. You can push it down, but it will be forced to come out somewhere else.
The result will likely be higher monthly premiums & deductibles for Part D Drug Plans. Those taking fewer drugs will also be forced (by way of higher premiums & deductibles) to offset the cost for those who take lots of prescriptions or very expensive prescriptions.
The insurance carriers are using the term "Redesigning Medicare" & because of the changes we're likely to see in the new plans for 2025 they are using the word "Disruption" when referring to the Annual Enrollment Period, which is the time of year people may shop & change their Medicare Advantage Plans as well as their Part D Drug Plans.
You will be able to enroll in the new 2025 plans October 15th - December 7th.
Be on the lookout for any information on changes being made to your plan. If you do not receive anything in the mail by October 15th, contact your carrier to find out what changes have been made.
While it's always a good idea to shop your Medicare Advantage & Part D Drug Plans every year, it will be more important than ever before to do so.
I am contracted will all of the major carriers & have access to all of the major plans. There is never a charge for my services. This will be a lot to navigate through. Please feel free to call me, I'm always happy to help!
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