By Tim Bergeron, Plan Medigap
On August 8, 2022, President Biden signed the Inflation Reduction Act of 2022 into law, aiming to lower drug costs for seniors on Medicare (among other things). I always tell clients that changes with Medicare are like steering a large ship – it happens slowly. Below are some changes you can expect as each year passes.
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 and other drug benefit changes
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
Many of you will not notice anything different with your plan or the cost of your medications. The changes mentioned above are designed to help folks who have very expensive medications.
We don’t yet know the long-term implications of these changes, but I’ve worked with many seniors with very expensive Medicare Part D drugs. The reality is that some seniors are choosing between food or their medications.
Whether you receive your drugs in a stand-alone drug plan or within an Advantage Plan – these changes will apply.
As always, Plan Medigap would love to help you with your Medicare plans. Whether you’re about to turn 65 or already have Medicare and would like your plans reviewed, we would be happy to assist you.
My next article will be about Medicare’s Annual Enrollment Period, so be sure not to miss it in the October issue of The Cross Timbers Gazette! Visit us at 2604 Long Prairie Road, Suite 100 in Flower Mound, or call us at 800-750-2407! God Bless!
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