Time is running out for retirees to select their plan during Medicare open enrollment. Depending on the plan, licensed insurance agent Jasmine Alberto said it may cost more.
People who enroll in Medicare Part D plans for their prescription medicine will pay, on average, 42% to 57% more in 2024 for plans compared to 2023, according to Alberto.
The increase she said is tied to the Inflation Reduction Act which was passed by Congress and signed into law by President Joe Biden to cap costs for those with Medicare.
“There will be a relief for certain people, so they don’t have to pay that five percent after they go into catastrophic but the unfortunate part that has to come from somewhere,” said Alberto with Connie Health, a platform that helps seniors connect with a local agent to choose a Medicare plan.
“So, we’re kind of seeing its being spread to people who might in other words not affected but gone into the donut hole and now they’re going to see higher premiums.”
Alberto said Texas along with California, Florida, New York and Pennsylvania will see the highest increases based on each state’s largest Medicare providers.
Changes with the Inflation Reduction Act will lower out-of-pocket maximum drug costs for participants in 2025.
“Starting January 1, 2024, once your out-of-pocket spending reaches $8,000 (including certain payments made by other people or entities, including Medicare’s Extra Help program, on your behalf), you’ll automatically get ‘catastrophic coverage.’ This means you won’t have to pay a copayment or coinsurance for covered Part D drugs for the rest of the calendar year,” according to federal government website, medicare.gov.
“In 2024, they will no longer pay that five percent unfortunately when you have the company paying 100 percent of the cost, you’re going to see there’s going to be increases,” Alberto said. “Where we’re seeing increases is going to be in the planned premiums and also in the different drug tiers.”
Premiums, she said, could be between 5% and 47%.
“Is there anything anyone can do to try and [lower] the likely increase of these premiums? One of the things is shopping. We need to make sure you’re on the plan or has your plan increased,” KPRC 2′s Rilwan Balogun asked Alberto. “If you’re really having a hard time and you’re struggling and you can’t pay for your medication, please make sure that you’ve checked and seen all the programs that are available. There is available [help] it’s called Extra Help through the Social Security [Administration] to pay for prescription drugs.”