Medicare part D covers prescription drug costs and in the past, it was something federal retirees didn’t have to really worry about. But now, thanks mostly to the Inflation Reduction Act of 2022, that is no longer the case. Among other reforms, the act capped insulin costs at $35/month and made it so Medicare D premiums cannot go up more than 6% from the previous year.
The prospect of adding Medicare D coverage to a federal retiree’s health insurance might also be appealing due to FEHB premiums increasing an average of 7.7% in 2024 and Medicare B premiums rising 5.9% – which will offset the 3.2% COLA for social security retirement benefits.
OPM has been encouraging FEHB plans to include Medicare part D components and for 2024, there will be 17 health plans that have part D coverage. All of these plans, except those offered through the carrier BCBS, will auto-enroll eligible individuals in Medicare part D. Those covered by Blue Cross Blue Shield (BCBS) will need to opt-in unless they are already enrolled in both parts A and B. If an FEHB enrollee has health insurance other than one of these 17 plans, they are still able to enroll in part D separately.
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Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
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