We have begun the Medicare Annual Enrollment Period! October 15th – December 7th. There are two big things worth discussion this month — drug coverage and plans that are being discontinued.
Part D of Medicare is prescription drug coverage.
It can be in the form of a standalone drug plan or combined with part A/B in a Medicare Advantage (Part C) plan. Either way you get your Medicare drug coverage, the changes for 2025 will be the same. Some changes are good, some are not!
The donut hole (Coverage Gap stage) is G-O-N-E!
- The maximum out of pocket drug cost for an individual is reduced to $2,000/year!
- Many drug plans are increasing their premiums.
- Drug deductibles may increase to $590 for some or all tiers.
- If you expect you will reach the $2,000 drug maximum out of pocket, you can opt in to a new program called M3P.
Rather than paying the majority of your drug costs in the first months of the year, you can choose to pay 12 equal payments throughout the year.
Look for information from your current insurance company about this program. Individuals identified as a good fit will receive letters offering the option, including instructions for enrollment.
Those who opt in will have a $0 balance at the pharmacy and will be billed by their part D insurance company.
Note: This is NOT an insurance plan, it is a program that will be offered by any and all Medicare drug coverage plans and may be enrolled in at any time of year.
By now you will have received your Annual Notice of Changes (ANOC) or your Notice of Termination letter. One tells you how your existing plan will be changing for 2025 and the other tells you your plan will END December 31st. Of all years, please pay attention to these letters this year! If you have a part D plan:
- How much did your premium increase?
- Are your medications going to be covered in 2025?
- If you’re not happy with the answers, ask a local Medicare broker for help or check your coverage options on Medicare.gov.
- If you have a Medicare Advantage (Part C) plan:
- Is your plan renewing? If so, make sure your medications will continue to be covered in 2025.
Is your plan terming the end of December? If so, you MUST enroll in a new plan or you will only have part A/B as of January 1, 2025!
Please contact a LOCAL broker to help you with a NO COST plan review. These brokers represent all major insurance companies and will be accessible throughout the year when you need them.
We do not offer every plan available in clients’ area. Currently we represent 13 organizations which offer 92 plans in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options. We also offer many top rated Medicare Supplement organizations.
Hanson Insurance • Sixteen local brokers, specializing in Medicare, and ready to assist with all your health insurance needs. HansonFirst.com • 512-817-6906 • NPN #18816155