Inflation has impacted almost every part of our lives from going to the grocery store to the utility bills we receive monthly. The goal of The Inflation Reduction Act of 2022 was to lower drug costs for seniors but there may be unintended consequences. A study conducted by HealthView Services reviewed 2024 premiums for stand-alone Medicare Part D in five states with the highest population of residents over 65 (Florida, Pennsylvania, New York, Texas, and California). The results of the study indicate that the average stand-alone Medicare Part D premium will rise between 42% – 57%.1
Not only does Medicare Part D have monthly premiums, but there are also out-of-pocket expenses. We have found that prescription plan formulas often change significantly from year to year. During open enrollment, which runs from October 15, 2023, through December 7, 2023, we encourage you to go to the Medicare website to compare Part D out-of-pocket costs in 2024 for the specific prescriptions you take. You’ll need to know the name of the prescription(s), the dosage, and where you purchased your medication(s). The site is fairly easy to navigate, but please contact our office if you need assistance.
In July, CMS projected that the average total monthly premium for Medicare Part D would be $55.50, a slight reduction from 2023. The actual premium increase (or decrease for that matter) remains to be seen. Shopping your Medicare Part D plan as well as the premium notice you receive will give a much better idea of your out-of-pocket costs for 2024.
Your financial advisors are here to help with any cash flow needs that may result from the increase. Please do not hesitate to reach out if you have questions or concerns.
1Barrons, November 18, 2023