Posted on 11/25/2023 9:07:40 PM PST by SeekAndFind
Retired Americans enrolled in Medicare's Part D prescription coverage could see their premiums increase by 42-57 percent in 2024, a new analysis by HealthView Services has found.
Early indicators show significant cost hikes for retirees in the five states with the largest senior populations. This is different from an earlier report projecting slight premium declines across Part D plans next year.
(zimmytws/Shutterstock)The HealthView report, published in November 2023, contrasts sharply with a July projection by the Centers for Medicare & Medicaid Services, the federal agency that administers the Medicare program,
The CMS said there would be a 1.8 percent decline in Part D premiums for 2024, citing the Inflation Reduction Act's reforms as the basis for stable or reduced costs.
However, HealthView tells a different story. It forecasts major hikes for retirees in states with large senior populations.
Projected 2024 premiums are $1,404 in California, $1,246 in Florida, $1,154 in Texas, $1,469 in New York, and $1,189 in Pennsylvania. This represents average increases ranging from $269 in Texas to $510 in New York.
The key driver of projected premium hikes is a change in the Inflation Reduction Act lowering the maximum out-of-pocket spending cap for Medicare Part D prescription drugs from $7,050 in 2023 to $2,000 in 2025. This will reduce co-pays for some, especially those with chronic conditions.
However, financial liability will shift to insurers expected to cover 60-80 percent of costs once patients hit the new $2,000 cap.
With roughly a quarter of Medicare recipients exceeding this threshold, HealthView analysis suggests carriers will raise premiums to account for their increased coverage requirements. The higher premiums are a way for insurance companies to cover the expected increase in costs.
So, while the Inflation Reduction Act aims to lower overall healthcare costs for retirees, it may actually increase 2024-2025 Part D premiums for 75 percent of enrollees seeing no co-pay relief.
Americans pay for prescription drugs over 2.5 times more than other high-income nations. One in five seniors alter medication use due to high prescription costs, a May 2023 national survey found. They either skipped, delayed, took less medication, or took someone else's medications.
Even small Part D premium hikes could strain budgets when combined with other costs. The Council of Aging reports the national average at $2,000 annually for Part B plus another $3,600 a year for supplemental coverage like Medigap Plan F.
With health costs a top concern for retiring Americans, the HealthView analysis shows 2024 increases could outpace the average retiree's Social Security cost-of-living adjustment (COLA) by 70 percent. For those on fixed incomes, outpacing COLA adjustments poses real financial challenges.
I’m fortunate that I have retiree insurance that covers anything I need, should I ever need anything. Same with my wife, although she’s on all kinds of stuff. Never a copay on anything.
Speaking for myself and my wife, our Part D premium went from $10.10 per month to $0.40 per month. That’s a 90% REDUCTION In Part D premium. No special program. Regular Medicare Part D. No special retirement benefit. Straight out of the box Meidicare Part D premium.
That’s me too nice advantage plan zero copay for meds
I’m fortunate that I have retiree insurance that covers anything I need
~~~~~~~~~~~~~~~~~~~~~~~~
I’m a retiree also and have company provided drug coverage, no premiums but do have a $5 co pay on any prescription drugs I may need. In 12 months I spend $60 for insulin and that’s it.
A few months ago my doc took me off insulin and put me on Ozempic, still the same $5 per month but it’s only one jab per week instead of fourteen and it’s working great. The weight loss aspect of Ozempic is not a positive for me, it’s a side effect as I do not need to lose weight.
I’m thankful my stepdad was going to kick me out of the house. I had nowhere to go, so I signed up for the Navy. The VA is a lifesaver.
” Big Fn Deal.” - Chomo Joe
Ours are going up, plus Medicare will no longer allow us to use our local pharmacies.
Mine went from $8 per month to 50 cents.
p
My part D went from 11 to 0 with the deductible rising from 505 to 525, I think it is without having to go look. The deductible went up for everyone with regular part D, I think.
Closing the donut hole is helping me personally...
try to stay healthy folks
Yeah, not sure what I am missing...our Part D went from $8.95 down to $0.40/mo....it isn’t a “Cadillac Drug Plan” I guess.
Semi-related: we don't have a Medicare supplement either. I think they are a scam.
For me, it looks like it’s going to be ~$15/month to get nothing (except future options to pay a basic premium without a late sign up percentage penalty)
Annual Enrollment closes December 7. Coverage for 2024 plans begins January 1.
Cigna Saver Rx (PDP)
Monthly Premium
$16.80
Drug Type Preferred Home Delivery
90-day supply Preferred In-Network
30-day supply Standard In-Network
30-day supply
Tier 1: Preferred Generic $0.00 $0.00 $10.00
Tier 2: Generic $6.00 $6.00 $20.00
Tier 3: Preferred Brand 19% 19% 20%
Tier 4: Non-Preferred Drug 50% 50% 50%
Tier 5: Specialty Tier N/A 25% 25%
Aetna SilverScript SmartSaver (PDP) S5601-186
Monthly Premium
$13.30
Tier 1 & Tier 2 $0/$5/$8/$12/$15 co-pays
Tier 3: Preferred Brand 24%
Tier 5: Specialty Tier 29%
SilverScript Plus (PDP) S5601-023
Monthly Premium
$101.80
[essentially]
Tier 1 & 2 $0 co-pay
Tier 3: Preferred Brand $47 co-pay/30-day supply
Tier 5: Specialty Tier 30%
The Aetna SilverScript SmartSaver formulary doesn’t have in my opinion a lot of Tier 3 drugs.
So is Aetna or Cigna better at approving Tier 4 & Tier 5 drugs without undue delay & hassle?
Ozempic:
“Helps your pancreas produce more insulin when your blood sugar is high
“Helps prevent your liver from making and releasing too much sugar
“Slows down food leaving your stomach”
https://www.ozempic.com/why-ozempic/how-ozempic-works.html
Sit rise test!
:-)
I remember talking to a young woman named Laurie.
She said she didn’t bet against herself.
I’m not fond of it myself.
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