As your agent, it’s my job to keep you informed when the wind of change is blowing, so please take a moment to read this newsletter.
You may not have seen the recent news, but a few significant announcements related to Medicare will likely impact your health and prescription drug coverage in the coming year.
Here are a few key announcements you may have missed.
Reduced Reimbursements*—For the second year in a row, the government has announced that it will reduce reimbursements to Medicare Advantage plans. As we have seen in the past, when reimbursements are reduced, we can expect to see member premiums and co-payments increase and/or benefits reduced to make up for the lower reimbursements.
Prescription Drug Plan Changes*—As part of the Inflation Reduction Act, drug plans will be required to have a $2,000 out-of-pocket maximum on prescription drugs. While this is good news for consumers, it will likely increase the cost of health plans. As we know, these additional costs are often passed along to customers through higher deductibles and co-payments.
Medicare Supplement Increases*—Many industry professionals predict a rise in Medicare Supplement premiums. During COVID, many people could not see a doctor to get Medicare care for their illnesses. As those illnesses were not treated early, many plans are seeing an increase in visits to the doctor now, which is increasing their overall cost. As stated above, these increases will likely be passed along to customers.
It’s Imperative To Compare Your Options For Next Year
Conclusion
What does all this mean? While the impact of these changes will be made public on October 1, this is shaping up to be a year for careful review of your plan benefits. If there were ever a year to do a deep dive into your plan benefits, this would be the year.
Please be on the lookout for your Annual Notice of Change letter from your current Medicare Advantage or PDP plan carrier. This document will outline the changes to your plan beginning January 1, 2025. You must read and understand any changes to your plan in the coming year.
May I remind you that one of the many services we provide to our clients free of charge is an annual plan review? We’re happy to review your plan benefits to ensure they still meet your cost and coverage expectations.
With Core Insurance Advisors, a trusted local health insurance agent is working to give you personalized service, extensive coverage options, advocacy, and expertise that online insurance companies cannot match. When it comes to your health insurance, choose the personalized approach from a Core Insurance Advisor.
Please call us as soon as possible to schedule a review of your plan. If you have a friend or family member who’d like to experience the benefits of a local, independent health insurance agent, we’d love to speak with them at 877-404-8060.
*April 2, 2024, Axios Article – Medicare Advantage Plans to see 2025 base pay fall
*August 1, 2024 – KFF Article – What to know about Medicare Part D premiums
*June 20, 2024 – BGES Group Article – Big Changes Coming to Medicare in 2025
