Fall is upon us: cooler temps, changing leaves, pumpkin spice…everything.
Oh, and Medicare enrollment.
While admittedly not nearly as thrilling, it’s a fall tradition that nevertheless remains crucially important for your health care and your financial future.
Annual enrollment this year falls from Oct. 15 to Dec. 7, with any changes you make effective on Jan. 1, 2025 (assuming you meet the deadline). So, how long has it been since you’ve reviewed your Medicare policy? Have you switched doctors? Changed medications?
Now’s the time to assess where you are – and what you need for the year ahead – and it’s a good time to consult your wealth advisor before you add, drop or switch Medicare plans. And if you’re new to Medicare, your wealth advisor can help you through the Initial Enrollment Period, which begins three months before your 65th birthday and ends three months after. In other words, the time to make that call is now.
Learn the latest Medicare changes for 2025
Your wealth advisor isn’t just there to help manage your investments or build your estate plan. They’re also incredible resources for personalized support and guidance as you navigate the often-confusing Medicare enrollment process — including any changes or improvements made to the plan.
The good news is the Centers for Medicare & Medicaid Services announced that the average benefits, premiums and plan choices for both Medicare Advantage and Part D should remain “stable” for 2025. Beyond that, CMS reports that thanks to the effects of the Inflation Reduction Act, Medicare will be offering new enhancements and protections to the program, ensuring everyone has access to strong choices for Medicare Advantage and Part D.
Other new changes and improvements include:
- Medicare Advantage (Part C) premiums are expected to decrease by $1.23, from $18.23 in 2024 to $17 in 2025. Plus, about 60% of enrollees in their current plan will have no premium at all in 2025, and approximately 83% will have the same or lower premium in 2025 if they stay in the plan.
- The number of Special Needs Plans (SNPs) will increase by 9%.
- The number of Medicare Advantage plans that provide targeted supplemental benefits for the chronically ill will increase.
- Premiums for Medicare Part D (prescription drug coverage) should decrease by $7.45 in 2025 (from $53.95 to $46.50).
- The out-of-pocket cost for prescription drugs in 2025 will be capped at $2,000 (a 50% reduction from 2024).
- The new year also brings improved access to marriage and family therapists, mental health counselors, addiction medicine clinicians, opioid treatment providers, and others.
All these changes and more are outlined in the Annual Notice of Change (ANOC) letter, which should have arrived by mail or email — so be sure to read it carefully!
Enroll the smart way with wisdom from your advisor
October also marks the start of all those marketing campaigns, mailers, TV commercials and emails that seem to be everywhere. Many are wildly misleading, available only to Medicaid enrollees or not even available in your geographic area, and all the competing voices can cause a lot of confusion. In fact, a recent survey of Medicare participants showed that 63% feel “overwhelmed” by all the Medicare advertising.
Many Medicare enrollees also fall victim to choosing a plan based only on the premiums without considering their future health care needs. Remember that the wrong Medicare choice can drastically hinder both your physical and financial health, and higher-than-necessary health care costs can threaten your future savings.
Instead, take advantage of the abundance of information available to you. Your wealth advisor can guide you through potential Medicare enrollment mistakes by keeping you apprised of the latest changes and regulations, while providing personalized advice based on your specific financial situation. Your advisor can also evaluate Medicare supplemental plans (known as Medigap or Medicare Advantage plans) and help you with long-term care planning (which isn’t generally covered by Medicare).
Your advisor can also integrate your Medicare choices with your broader financial plan – from investment strategies to life insurance policies – which means those upcoming health care costs will be accounted for in your retirement planning. This kind of holistic approach will help you maintain financial stability while securing the health care coverage you need.
And that’s the kind of peace of mind that gets you back to enjoying fall again.
Tony Moeller : (July 17, 2024)
