Advisor tip: Ensure your clients are aware of their total premium cost for 2025, including the increased Part B and Part D premiums.
2. Medicare Part B Premium Adjustments:
What’s changing? Premiums for Medicare Part B outpatient and physician services coverage will adjust for inflation. The surcharge known as the income-related monthly adjustment amount, or IRMAA, will apply to higher-income beneficiaries. The IRMAA adjustment tier for 2025 premiums will be based on beneficiaries’ modified adjusted gross income for 2023.
What it means for beneficiaries: Inflation-based adjustments to IRMAA brackets could shift some beneficiaries into different IRMAA tiers.
Advisor tip: Help clients understand their MAGI calculation and appeal IRMAA surcharges if their income was temporarily elevated in 2023 due to unusual life events, such as a retirement or a one-time capital gain.
3. Additional Benefits Under the Inflation Reduction Act:
What’s changing? Free vaccines recommended by the Advisory Committee on Immunization Practices and caps on annual Medicare Part D prescription drug plan premium increases will take effect.
What it means for beneficiaries: Reduced costs for preventive care and predictable premiums.
Advisor tip: Educate clients about these benefits and encourage them to utilize preventive services.
Broader Considerations And Looking Ahead
While the new drug cap and premium adjustments are major developments, beneficiaries must still plan for other health care expenses, such as deductibles and co-payments.
Medicare Advantage plans or Medicare supplement insurance plans (also known as Medigap plans) may provide additional cost-sharing options, depending on the beneficiary’s needs.
Advisors can provide value by helping clients evaluate whether their current plans still meet their health care and financial requirements.
