Thanks to the Inflation Reduction Act, older adults are saving money, and more benefits are coming in 2025. Its health care components aim to address rising Medicare costs, especially for medications.
Michael Reeves, Assistant Director of Medicare Sales at Regence BlueCross BlueShield of Utah, joined us to explain how it works.
He says the Inflation Reduction Act was established in 2022 with the goal of improving the U.S. economy.
Part of the Act deals with health care and the rising medicare costs, specifically the cost of medications.
Reeves says drugs are the number one driver of increased health care costs for seniors.
There are benefits in place now for people covered by Medicare insurance that were effective on January 1, 2023.
Benefits include a cap on insulin costs at $35, $0 out-of-pocket costs for covered vaccines under Part D drug coverage and Medicare-negotiated lower prices for 10 commonly prescribed drugs.
Reeves says there are more changes happening in 2025, including costs of drugs that will drop by 75 percent for sever single person on Medicare.
In addition there will be a $2,000 out-of-pocket cap on medications starting in January 1, 2025. That's the most someone with a Medicare plan will pay annually for covered medications.
Reeves says there may be other changes as well, so it's good to keep an eye on your current plan and identify annual changes.
The annual enrollment period starts on Tuesday, October 15 and goes through December 7, 2024.
That means older adults have three-months to find a Medicare plan that's right for them.
Older adults who are still working usually do not have to enroll in Medicare as long as they're covered by an employer-provided health plan.
Especially important for people who have a health savings account through their employer to know
If they do enroll in Medicare, they may lose their health savings account which is a cost-saving benefit.
Utah health insurance agents who sell Medicare plans offer a deep knowledge of local plan options including in-network hospitals, doctors, specialists and more.
A local agent can help older adults understand their individual benefit options and cost savings and they can run run a medication analysis and identify local cost savings on prescriptions.
Regence also offers a variety of affordable Medicare plans. Visit regence.com/medicare to learn more or call 844-REGENCE (734-3623). TTY: 711, Monday through Friday from 8 a.m. to 5 p.m.
