In every case, the end of the year brings about changes that will take place as soon as the new year starts. They are most interested in these changes because they will have the most to gain or lose from changes to Medicare, Social Security, and even taxes.
What will happen with Medicare in 2025?
If you are an American over 65, you are eligible for Medicare benefits. One of the great things about these benefits is that they partially pay for prescription drugs. The biggest change that the program will make going forward is a $2,000 cap on out-of-pocket costs for prescription drugs. This will be paired with a new program that will help enrollees spread out their medication costs over the year, which will help them budget better and avoid some of the most difficult costs.
The Inflation Reduction Act (IRA) calls for both of these changes, which are being put into place slowly. The Biden-Harris government put the Act into effect as a plan to improve U.S. health and climate law broadly. It is seen as one of the most important things their government has done, and the measures it includes will keep growing and being put into place until 2027.
When asked about 2025 Medicare drug benefits at an event put on by The Hill on Tuesday, Amy Niles, Chief Mission Officer of the PAN Foundation, had something to say. “That $2,000 cap is good news for people who have some kind of serious illness and are used to having to pay a lot of money out of pocket.” Even though for many Americans it is still a lot of money, many towns will still have a hard time.
For seniors, this cap is great because it starts to apply instantly; there is no need to apply or send in a receipt. The first $2,000 will cover their fees and copayments. After that, all of their Medicare Part D drugs will be free. The bad thing is that you need to sign up for the new Medicare Prescription Payment Plan to get the benefits, and not everyone knows about it.
As we already said, this plan will help spread the cost of prescription drugs out over the year. This is especially helpful for people who take a lot of expensive prescription drugs. Do the math: $2,000 at the start of the year equals $167 a month. Even if you don’t reach the limit that quickly, the amount you’ll have to pay will be more doable. This will help seniors save money and plan better since they won’t have to pay at the drugstore counter but instead through their insurance company.
Some states, like Maryland, have teamed up with senior centers and older adult education centers to teach older people about the changes that are happening in the program. But not everyone thinks this gives seniors enough information.
The founder and CEO of MAST Health Policy Solutions, Tom Kornfield, said that the federal government should do more to help people understand when they are making such big changes. “When the government makes a rule, they need to stick to it.” CMS (the Centers for Medicare and Medicaid Services) doesn’t seem to be making that kind of promise either. I think it’s a bad thing… That seems like a missed chance to me. Take a good look at your plans and compare prices. You might have to pay more for insurance if you don’t do something.
