12/02/2024

How to Take Advantage of Medicare’s Expanded Drug Benefit in 2025

It will be easier to spread out Part D drug costs over the year

Medicare's drug benefit, known as Part D, will see major changes next year as part of a broader push to help the 50 million-plus Americans enrolled in the program manage the cost of medicines.

It is one result of the Biden administration's Inflation Reduction Act (IRA) of 2022, which granted new authority for the government to directly negotiate with pharmaceutical companies over the prices of some drugs. The law also included two other big changes set to kick in next year: an option to “smooth” out co-payments for drugs on a monthly basis and a $2,000 cap on out-of-pocket spending for all people enrolled in Part D.

Because these provisions are new — and because Medicare benefits can generally be dauntingly complex — it’s important to understand how they work. A good time to look at them is ahead of the deadline for Medicare open enrollment, which hits Dec. 7. While an enrollee can sign up anytime for the smoothing option, it’s useful to consider it as part of a holistic assessment of Medicare benefits. Too many seniors miss out each year on the chance to spend less for better drug coverage by shopping for a new Part D plan.

Please select this link to read the complete article from The Washington Post.