Fifty million Americans have prescription drug coverage (Part D) through a Medicare Advantage prescription drug plan or stand-alone prescription drug plan (PDP). While 2023 has seen minor changes to what you pay or the benefits you get with these plans, 2024 and 2025 have big changes coming. Let’s look at what’s in place and what will be different going forward.
Current Prescription Drug Coverage Benefits
The Inflation Reduction Act has already helped Medicare beneficiaries in 2023. More vaccines, like the shingles vaccine, became available with a $0 copay for folks with Medicare. The cost of insulin was reduced to a $35 copay per month.
In 2023, there is no maximum set on what someone with Medicare pays for prescriptions. If a person with Medicare spends about $7,400 on drugs, he or she reaches what Medicare calls the catastrophic coverage phase of Part D, but that person still pays 5 percent of the cost of his or her drugs for the rest of the year. That could be hundreds of dollars a month for patients on high-cost cancer drugs.
2024 Part D Benefits
Starting in 2024, prescription costs will be capped for the first time in history to a true maximum out-of-pocket amount for folks with Medicare. If someone with Medicare pays about $3,300 in drug costs, he or she pays nothing for prescriptions for the rest of the year. The insurance carrier will pay all of what the Medicare member used to pay for drugs in the catastrophic phase in 2023.
2025 Part D Benefits
In 2025, Medicare’s Part D coverage gap will go away. The most a person with Medicare will pay for prescription drug costs is $2,000. This is a savings of more than $5,400 from 2023 in prescription drug costs for folks with Medicare. However, insurance carriers will be paying a lot more for medications. This could mean Medicare plans with drug coverage may have higher premiums.
Freedom and Peace of Mind With BlueCross BlueShield of South Carolina
Adapting to change can be hard, and you will see a lot of changes in the next two years. BlueCross empowers members with the flexibility to adapt as Medicare laws change. Picking BlueCross now could be a game-changer over the next few years. As the only carrier that gives Medicare Advantage members 36 full months to move to a Medicare Supplement plan and stand-alone PDP without underwriting, BlueCross helps you retire with confidence. You can have peace of mind knowing BlueCross is here to answer your questions and keep you informed of changes coming to your Medicare benefits.