Maximizing your benefits and minimizing your costs for Medicare is becoming increasingly complex, especially for the year 2025. Due to major insurer cuts required by the Inflation Reduction Act, millions of seniors will lose access to their existing Medicare Advantage plans as well as their existing Medicare Part D plans. Some insurers are terminating plans, reducing popular benefits such as dental coverage, and increasing charges for deductibles as a way to respond to new federal government requirements and to maintain profits.
According to some experts, this is the largest disruption to Medicare plans that we’ve seen in a decade. About 25% of Medicare Part D plans will cease to exist. Hospitals and doctors are dropping some plans; for example, Russell Medical Center in Alexander City announced that it would no longer accept Humana Medicare Advantage plans as of October 1, 2025.
With regards to Medicare Advantage plans, reports are that premiums may decline next year. However, many of these plans are significantly raising their maximum out-of-pocket cost. Wall Street analysts at Leerink Partners found that Humana will have, on average, the largest increases in maximum out-of-pocket costs among the big Medicare insurers.
Enrollment in Medicare Advantage plans continues to increase, so nearly half of Medicare participants use Medicare Advantage plans. These plans have an annual maximum out-of-pocket cost for hospitalizations and doctor treatments. Some include coverage for prescription drugs. In light of the significant changes to Medicare Advantage Plans and Medicare Part D plans, it is advisable to review your coverage even if your plan will not be discontinued.
Medicare’s open enrollment period started October 15 and continues until December 7. On Wednesday, November 21, from noon to 1:30 p.m., Susan Moore of Moore Wealth Management, Inc. will be conducting an annual complimentary webinar workshop that covers the changes for 2025 and how to maximize your Medicare in light of these changes. There will be both a live and recorded version. Please call the Moore Wealth Management office for further information or reservations at 334.270.1672 or email sarah@moorewealthmanagement.com. If you miss the webinar, we will offer free consultations that are without obligation.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax advisor regarding your individual situation.
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