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 2024? Here is a sneak peak at the exciting and maybe not so exciting changes.
The Inflation Reduction Act Continues
There are several aspects of the IRA that affect Medicare Beneficiaries. The implementation is happening in pieces year over year. Although some of the changes seem very exciting and beneficial, be cautious and aware of the effects. When a large benefit to some gets implemented, there will be a benefit pulled from others. Simply put, with every action, there is an equal and opposite reaction. The money must come from somewhere. So, what does this mysterious message mean for 2024?
· If your drug costs are high enough to reach the 4th phase of Part D coverage – the catastrophic phase, you will no longer have copays or coinsurance for those medications. Prior to 2024, there were small copays for generic and brand medications in the catastrophic phase. That piece has been eliminated.
· Extra Help or Low Income Subsidy is expanding. This is help for the cost of prescriptions drugs for people under a certain income level. This is not the same thing as Medicaid. Extra Help is administered by Medicare through the Social Security Administration. The good news is that more people will be eligible in 2024 as they are raising the threshold on income level. They are also removing partial eligibility and giving all that are eligible full subsidy. See previous blog explaining Extra Help [https://www.cdi-cares.com/blog/what-is-extra-help-could-you-qualify]
· Lastly, beginning in 2024, Part D plans will be limited in their premium increases to a maximum of 6%. This is a change that affects the actual premium increase for the plans in 2025. This is where the subtle negative impact has already been felt. Insurance companies know this is coming along with the $2000 out of pocket cap on drug costs in 2025. In anticipation of this, they have already raised premiums for 2024 by large amounts. You may have noticed this already on your Annual Notice of Change you received from your Part D plan this fall. And now you know why…..
More Times to Sign Up for Medicare
Recently, there was a large-scale redetermination for those who qualified for Medicaid which is low-income assistance provided by the state. Medicaid serves as a secondary coverage to Medicare for dual eligibles and covers most out of pocket expenses that Medicare doesn’t cover. Full Medicaid eligible individuals also have their Part B premium waived. During the redetermination process, many have lost their Medicaid status or eligibility. There are many different reasons for this and too many to discuss here. However, the impact is such that Medicare added a Special Enrollment for people in this situation. No matter what time of year you lose your Medicaid, you can then enroll in Medicare Part B and add an appropriate secondary coverage. You can also change your current Medicare coverage. There are certain restrictions to this, so seek the guidance of a licensed insurance professional to guide you.
When is Medicare Open Enrollment for 2024
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 next year, in this case 2024. 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 2024. 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 2024 during this time. Find out more specifics in this previous blog https://www.cdi-cares.com/blog/medicare-open-enrollment-whats-your-part
CDI is here to help you through this entire maze. We can meet in person or virtually. Reach out if you would like more information. Email carrie@cdi-cares.com or check out www.cdi-cares.com for a contact page and other helpful blogs.
QUOTE OF THE DAY:
If spring represents new birth and childhood, and summer symbolizes youth, autumn represents adulthood and maturity.
- Author Unknown
