Medicare annual enrollment is underway through Dec. 7, and millions of seniors may find picking a plan is much harder this year than in the past, experts said.
For the first time, out-of-pocket prescription drug costs will be capped annually at $2,000 and all enrollees will have the option to pay those costs in the form of capped monthly installment payments instead of all at once at the pharmacy. These are positives for consumers, particularly for those who reach the cap. AARP estimates in 2025, 3.2 million Americans, or 8.4% of all those with a Part D drug plan will reach the cap.
But to pay for the changes, insurers are tweaking their offerings, which could result in fewer benefits for many seniors that could also cost them more money, experts said.
Some insurers are cutting plans, exiting certain “unprofitable” markets, trimming popular offerings like dental coverage and increasing charges such as deductibles, premiums or co-payments that all Medicare enrollees pay.
“This year’s Medicare marketplace will be more chaotic than ever,” said Vijay Kotte, chief executive of Medicare marketplace GoHealth. “With fewer options, higher costs, and diminished benefits, older adults will be forced to navigate one of the most disruptive enrollment seasons in recent memory.”
How many Americans are affected?
More than 80% of traditional Medicare users buy a Part D plan. Many also buy a supplemental plan, known as Medigap or Plan G, so that once the annual deductible is met,…
