If you do a google search on Medicare Prescription Drug Plan changes for 2025, you will see articles stating that the Inflation Reduction Act of 2022 will lower drug costs for people on Medicare. While this is undoubtedly true, it is not the whole truth, and unfortunately, they are lying by omission.
First, let’s look at the positive effects of the Inflation Reduction Act on the 2025 Medicare Drug plans.
Facts on the changes in the 2025 drug plans:
- The maximum annual cost of prescription drugs will be capped at $2,000.
- All Medicare drug plans, including Medicare Advantage plans that offer prescription drug coverage, must allow patients to pay for their out-of-pocket prescription costs in monthly installments, with a monthly spending limit.
- Please note that Medicare recipients must enroll in the monthly payment plans as enrollment is not automatic.
- The Medicare Part D annual drug cap applies only to medications covered by a person’s prescription drug plan.
The dirty little secret that nobody wants to discuss with the Inflation Reduction Act is that there will be a significant increase in the premiums that Medicare Beneficiaries will pay for their Medicare Prescription Drug Plans.
So, while it is true that many people will pay less for the prescriptions, many more people will pay more for their drug plan premiums.
We don’t know how much more Medicare Drug Premiums will increase, but people in the industry expect prescription plan premiums to increase by 50% or more.
Drug plan pricing for 2025 will not be available until October 1, 2024.
I advise all my clients to run their drugs at the Medicare Plan Finder on the Medicare.gov website.
I will record a ” How-to Video” on using the plan finder, which will be available on my website in a few months. As always, I will run the drug plans for any clients who ask, but I want to let everyone know that I may not be able to accommodate everyone, so some people may have to run their own plans.
For those of you not taking any prescriptions, I will list the three lowest-cost drug plans on my website once the new plans become available.
If more information on the drug plans becomes available, I will include it in the Fall newsletter.
In the meantime, if you have any questions or concerns, do not hesitate to call or email me.
CMS (Centers for Medicare and Medicaid Services) has announced the Medicare Part A & Part B costs for 2023.
Part A
Part A deductible 2033 is $1,600.00 per period, an increase of $44.00.
Part A deductible in 2022 was $1,556.00 per period.
Part B Premium
The standard monthly premium in 2023 is $164.90 or $5.20 lower than in 2022
The standard monthly premium in 2022 was $170.10
Note: People in higher-income brackets will pay a greater Part B monthly premium.
Part B Deductible
The annual deductible in 2023 is $226.00, a decrease of $7.00 from 2022
The annual deductible in 2022 was $233.00
Click here to see more detailed information directly from the CMS website.
Your Questions and Concerns are my Business
I help seniors confused by their Medicare options by explaining Medicare in plain English, saving them time and money.
I specialize in Medicare plans for seniors and represent all Medicare Supplement plan types.
Medicare Explained in Plain English
In most situations, Medicare won’t pay for health care or supplies you get outside the United States, which can pose problems when traveling. But your Medigap (Medicare Supplement) policy may offer additional coverage for emergency health care services or supplies you get outside the U.S.
Standard Medigap Plans C, D, F, G, M, and N provide foreign travel emergency health coverage when you travel outside the United States.
Plans E, H, I, and J are no longer for sale, but if you bought one before June 1, 2010, you might keep it. All of these plans also provide foreign travel emergency health coverage when you travel outside the U.S.
The coverage from your Medicare Supplement plan only applies to the first 60 days of foreign travel. There is a $250.00 deductible, then an 80/20 split, with the plan paying 80% and you pay the other 20%, up to a lifetime maximum of $50,000.
When planning extended travel (more than 60 days) or you are concerned about the $50,000 limit, you may want to consider a separate travel insurance policy.
For more information on Medicare coverages while abroad, see the following articles from the Medicare website.
Travel Outside the United States
Medigap (Medicare Supplement) and Travel
If you have questions or concerns, call (970-773-0220) or email me. (gvsb65@gmail.com)
Medicare explained in plain English
Original Medicare consists of two parts Medicare Part A (hospital insurance) and Medicare Part B (medical insurance). If you or your spouse have paid Medicare taxes for 40 quarters (ten years) or more, you will not pay a premium for Medicare Part A. However, you will pay a monthly premium for Medicare Part B, and people with higher incomes will pay higher premiums.
For 2022 the Medicare Part B premium can vary between $170.10 to $578.30 a month, depending on your income. For 2022 the standard monthly premium for an individual making $91,000 or less or a couple filing a joint return making $182,00 or less is $170.10.
Medicare will send you a bill if you are not collecting Social Security or Railroad Retirement benefits. If you are collecting Social Security or Railroad retirement payments, your monthly Part B premium will be deducted from your check.
Notes
If you are signing up for Medicare Part B in 2022, Medicare will use your tax return from two years previous or 2020.
Click on the link below to see the complete Medicare Part B premiums table.
Medicare Part B Premiums 2022
Your Questions and Concerns are my Business
I specialize in Medicare plans for seniors and represent all Medicare Supplement plan types.
Medicare Explained in Plain English
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Medicare Basics
Original Medicare consists of Medicare Part A Hospital Insurance and Medicare Part B medical insurance. (more…)
