Some big, positive changes are coming to Medicare next year.
The program’s prescription drug insurance will be much stronger — and easier to understand — as a result of the Inflation Reduction Act of 2022.
But the changes make it all the more important to review your coverage options during Medicare’s annual enrollment period, which is happening now and runs through Dec. 7.
Prescription drug and Medicare Advantage plans are revising their offerings more than usual for 2025 because of changes prescribed by the law. The legislation strengthens prescription drug coverage substantially by simplifying cost-sharing and imposing a hard $2,000 cap on total out-of-pocket spending for drugs covered by your plan.
The law will provide thousands of dollars in relief to beneficiaries who take high-cost drugs for conditions such as cancer and multiple sclerosis, and it will give seniors greater predictability in planning their health care spending.
But the plan you’re in for 2024 may not be the best fit next year. Your premium and deductible might actually rise as insurance companies react to the changing rules, and the plan’s list of covered drugs might change.
I examine the changes in my latest Retiring column for The New York Times.
