Last year, I wrote about the Inflation Reduction Act and some of the changes to the Medicare Part D program. These changes were mostly aimed at lowering prescription drug costs for seniors. The Act’s implementation began in 2023 and will continue through the end of the decade. Here is a quick recap of the effects year by year:
2023
- Requires drug companies to pay rebates if drug prices rise faster than inflation
- Limits insulin copays to $35 month
- Reduces costs and improves coverage for adult vaccines
2024
- Eliminates 5% coinsurance for Part D catastrophic coverage
- Expands eligibility for Part D Low-Income Subsidy full benefits up to 150% FPL
2025
- Adds $2000 out-of-pocket cap in Part D, as well as other drug benefit changes
- Monthly payment plans to help manage yearly out-of-pocket costs for RX’s
2026-2029
- Implements negotiated prices for certain high-cost drugs
2024-2030
- Limits Medicare Part D premium growth to no more than 6% per year
You’ll notice that in 2025, drug costs are capped at $2000 per year. This is great news for those of you with high drug costs!
Unfortunately, if you currently have low drug costs, you’ll probably feel the impact of this change as well. To make up for the loss in revenue, we are expecting to see premium increases across the board on most prescription drug plans. We won’t know for sure until early October. If you’re on a Medicare Advantage plan, these changes will impact you as well.
Can you change your RX plan? Of course! Between October 15th and December 7th, you can adjust your prescription plan for the following year. I always recommend shopping for a better plan during this Annual Enrollment Period, even if you’ve only had your current plan for one year. These plans are constantly changing, so they are worth re-evaluating every year.
Each senior deserves individualized care. Medicare plans are nuanced and complicated, but you don’t have to wade through it all alone! We would be thrilled to help you on your Medicare journey. Our services are free to you. Stop in to see us at 2604 Long Prairie Road, Suite 100 in Flower Mound, or call us at 800-750-2407.
God Bless.
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