There may be some big changes in medical benefits and supplemental benefits offered in the upcoming Medicare Advantage plans available for 2025. My guess, reductions may mostly affect the supplemental benefits, but some medical benefits may be affected as well. However, we won’t know for sure exactly what the changes will be and agents won’t be able to discuss them until the beginning of October.
Reductions may be due to several expected factors, such as:
- Cut backs on government funding to insurers for Medicare Advantage plans.
- Some insurance companies are struggling financially since they offered possibly too generous medical benefits and supplemental benefits in previous years.
- Seniors are using more medical services than insurers previously expected, thus increasing their spending.
- Insurance companies offering Medicare Advantage plans (with prescription drug coverage included) will need to absorb some of cost for the new maximum out of pocket limits that members will have to pay for covered Part D drugs. The good news is that limit for members will be a maximum of $2,000/year for covered Part D drugs! Not so good news for the insurance companies offering the plans though. Since a portion of those drug costs over $2,000, they are expected to have to absorb, and will come out of their profits.
These factors should most likely affect all the different 2025 Medicare Advantage plans insurance companies across the market. Possibly some plans will be affected more than others. Possibly some counties may be expected to be more affected, than other counties. Again, we won’t know the details until early October.
So, if you have good medical benefits and supplemental benefits for your 2024 Medicare Advantage plan, enjoy them while you can. Possibly some them may be reduced or eliminated altogether for 2025.
Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.
By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.
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