AARP Medicare Rx Premiums

[GailH912737]

  My Rx Insurance monthly premiums of the program I signed up for October 2023 went from $32.60 a month to $68.50 a month.  More than a 100% increase in 3 months.  This is not inflation related.  Even products increasing for inflation don't go up over 100%.

When I asked the agent at AARP why...I was given a reading of a bunch of jargon I did not understand.  Will it increase again in 3 months???  Should I start looking at other insurance plans.  Is this just greed?  

I wish I could let someone know who might have the capability to change things about how seniors are being fleeced.  

[pm6378]

Mine went from $28+ to $57+ a year...sorry you got caught at end of year.....sounds like UHC tactic of good initial price the significant increase a few years in...or a way for UHC to make up profit on the insulin cap!!!  AARP never should have let this happen!!!  I went to Wellcare..no monthly premium makes up for the extra $100 deductible...saving $500 a year.  The good news is you can change next year.

[GailL1]

@GailH912737 

Your new premium is for 2024 - your old premium was for 2023 

What new benefits did you get in the 2024 plan?  Perhaps you got lower copays on some tiers or perhaps a lower deductible.  But there is also a host of others brought to you by the Inflation Reduction Act legislation.

The Inflation Reduction Act passed in 2022, is giving you some added savings in 2024 & 2025.  All these things will add to the premium cost of plans - especially now because beginning next year premium cost will contain a cap so many insurers are realigning their premium now to get ready for these added cost and benefits.

CMS.gov - Fact Sheet: 2024 Medicare Advantage and Part D Rate Announcement

from the link:

Inflation Reduction Act of 2022 (IRA) Updates for 2024

The IRA made several improvements to the standard Part D drug benefit defined in the Social Security Act. Part D benefit-related IRA updates that will be in place for CY 2024 include the following:

• Beginning in CY 2024, cost-sharing for Part D drugs will be eliminated for beneficiaries in the catastrophic phase of coverage.
• Beginning in CY 2024, the Low-Income Subsidy program (LIS) under Part D will be expanded so that beneficiaries who earn between 135 and 150 percent of the federal poverty level and meet statutory resource limit requirements will receive the full LIS subsidies that, prior to 2024, were available only to beneficiaries earning less than 135 percent of the federal poverty level; these subsidies provide for $0 premiums and low-cost, fixed copayments for covered prescription drugs.
• During CY 2024, Part D plans must not apply the deductible to any Part D covered insulin product and must charge no more than $35 per month’s supply of a covered insulin product in the initial coverage phase and the coverage gap phase.
• During CY 2024, Part D plans must not apply the deductible to an adult vaccine recommended by the Advisory Committee on Immunization Practices and must charge no cost-sharing at any point in the benefit for such vaccines.
• Beginning in CY 2024, the annual growth in the Base Beneficiary Premium will be capped at 6 percent. The Base Beneficiary Premium for Part D is limited to the lesser of a 6 percent annual increase, or the amount that would otherwise apply under the prior methodology had the IRA not been enacted.

ALL of these things add cost to the various plans - what each beneficiary(and the government's lower cost) gets from these changes depends on the individual, their needs and their chosen plan.

The Street.com - Medicare: Part D Premium Increases Expected in 2024, 2025

from the link:

. . . . . while average Part D premiums are projected to increase in 2024 and 2025, the impact on individual beneficiaries can vary widely depending on their personal situation.

Here are some key takeaways:

• The Inflation Reduction Act introduced a cap that limits average Part D premium increases to 6% per year. This will help control premium growth.
• However, the impact on individual beneficiaries can vary greatly depending on factors like which Part D plan they have, what prescriptions they take and what pharmacy they use.
• Further changes are coming in 2025 thanks to the Inflation Reduction Act, including the elimination of the coverage gap phase and a cap on annual out-of-pocket drug costs at $2,000.
• In summary, while Part D premiums are likely to trend higher on average over the next couple of years, the impact can vary significantly from person to person. Beneficiaries should review their options carefully during open enrollment each fall to ensure they are in the most optimal Part D plan given their prescription drug needs.

Open enrollment ended on 12/07/2023 for 2024 plans - Did you review your plan based on your needs while open enrollment was going on?  That's a real good thing to do every year cause needs and plans change.

[cat0w]

@GailH912737 

Was the plan you signed up for in Oct 23 just until the end of the year? If it is renewed for 2024 is that when it goes up to $68.50? 

Where are you located? Have you checked with other providers in your area to see what they charge.