On August 8, 2022, President Biden signed the Inflation 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 won’t see any major changes to your plan or the cost of your medications. The updates mainly aim to help people who rely on very expensive prescriptions. We don’t yet know how these changes will play out long-term, but I’ve worked with many seniors who face extremely high Part D drug costs. Some are making heartbreaking choices between paying for food or paying for their medications.
These changes apply whether you receive your prescriptions through a stand-alone Part D plan or through a Medicare Advantage plan.
Plan Medigap would love to help you navigate your Medicare options. If you’re turning 65 soon or already on Medicare and want a plan review, we’re here for you.
You can call us at 800-750-2407.
God Bless!
