Each year as we head toward the last quarter of the year, the Center for Medicare/Medicaid Services or ‘CMS’ begins to announce changes to Medicare for the coming year. Sometimes the changes are new regulations put in place by CMS, and sometimes there are changes written and signed into law by the acting government. So, what is coming up for 2023? Here is a sneak peek at the exciting and maybe not-so-exciting changes.
The BENES Act
Surprisingly, this act was signed into law in 2020, but the implementation begins in 2023. So here is what the changes are and what they mean for Medicare Beneficiaries:
General Enrollment Period (GEP) – for those who missed their enrollment period for Medicare Part B for whatever reason, they would usually have to wait until January-March to enroll late, and the effective date wouldn’t be until July 1st later that year. Meanwhile, these individuals are incurring penalties. In 2023, that changes to allow a quicker effective date. In other words, if you didn’t enroll in Medicare Part B when you had the chance at age 65 or after leaving an employer, but now you want to – you can enroll beginning in January of 2023 and the effective date will be the first of the next month rather than waiting until July 1st. The same will occur in February and March. This will remain as the new GEP for every year. That means each year, you can late enroll in the first quarter and have benefits effective nearly right away!
No 2-3 month wait in your second half of your Initial Election Period (IEP) -- This is for those turning 65 and wish to enroll in Medicare Part B during the 6 month window around their birthday month. Before BENES Act, if you waited until the latter half of the window, there was another 2-3 month delay in starting your benefit. Not anymore…..beginning in 2023, you can enroll any month during your Initial Election Period (IEP) and benefits will start the first of the next month.
Lastly, with BENES Act, there are new rules around notifying folks turning 65 of their election periods and when to enroll in Part B. This is in hopes people will get plenty of warning and not miss their enrollment deadlines.
The Inflation Reduction Act
Recently, the President signed into law the Inflation Reduction Act. There are several pieces of this that affect Medicare Beneficiaries. Although some of it is very aggressive and impactful, be very leery. Most of it doesn’t take affect or get implemented for many years down the road. But what does have a more imminent impact? In 2023 --
All adult immunizations for Medicare Beneficiaries are going to be covered in full! So beginning in 2023, the Shingles Vaccine, for example, will be covered by Medicare and all Medicare plans. This is new and very exciting!
All plans will be required to cap certain insulin prescriptions at $35 per month. This started as a pilot program in 2021, and plans could voluntarily participate, but for 2023, all Advantage Plans that include drug coverage in addition to all stand-alone Part D plans will be required to participate.
There are many more pieces to the Inflation Reduction Act that affect Medicare Beneficiaries, but the implementation occurs later in 2024 through 2026. These include exciting enhancements such as eliminating the 5% cost share in the catastrophic phase (2024), not allowing Part D premiums to increase more than 6% annually (2024), capping out of pocket spend on medications at $2,000 per year (2025) and the ability for DHHS to negotiate drug prices with large pharma (2026)! Stay tuned as CDI will keep you posted on these later developments.
When is Medicare Open Enrollment for 2023
This happens every year beginning October 15th through December 7th. This is a time where existing Medicare Beneficiaries can make a change related to Advantage Plans and stand-alone Part D plans. The new plan, if chosen, is effective January 1st of the next year, in this case 2023. This is NOT, however, the time of year to apply for a supplement or change supplement plans. That can be done any time of year and is subject to a health history check or underwriting.
Medicare Open Enrollment Reminders
You will get what is called an ‘Annual Notice of Change’ or ANOC in the mail regarding your current plan’s changes for 2023. Be sure to review this document. We also recommend that if you have had any changes in your health or medications, you get with an Independent Agent to review and quote plans for 2023 during this time. Find out more specifics in this previous blog https://www.cdi-cares.com/blog/medicare-open-enrollment-whats-your-part
Want to Know More?
Not to worry, friend. CDI is here to help you through this entire maze. We can meet in person or virtually. Reach out to us if you would like more information. We get excited to help you navigate Open Enrollment and build an ongoing relationship! Email carrie@cdi-cares.com or check out www.cdi-cares.com for a contact page and other helpful blogs.
QUOTE OF THE DAY:
“When you arise in the morning, think of what a privilege it is to be alive, to think, to enjoy, to love…”
– Marcus Aurelius