Every year, we encourage our clients enrolled in a Medicare Part D stand-alone prescription plan to take a few minutes to verify that their existing plan remains the best option for them. For the 2025 plan year, there’s a little more urgency, as some big changes are occurring that have never been a factor before.

Starting in 2025, Medicare is setting a $2,000 cap on out-of-pocket drug costs for those with Part D drug plans.  From brokers I have spoken with, this has caused a lot of turmoil in this market as some providers are changing what drugs will be covered under their formularies, co-pays, deductibles, and coverage of brand versus generic.  If you were happy with your Part D drug plan in 2024, it could be a different story in 2025.

What Should You Do?

The best source of information is the website Explore Your Medicare Coverage Options. On this page, you can follow the prompts to enter your prescriptions and preferred pharmacies.  This site is very helpful in finding you the best plan. 

Like previous years, some people can save substantial sums by switching plans while some should stay on their current plans.  It’s impossible to predict without going through this exercise. 

You have until December 7^th to make any changes.

Blue Cross Blue Shield Medicare Supplement

There is another change you may want to consider if you are on a Blue Cross Blue Shield (BCBS) Medicare Supplement.  BCBS has a new Medicare Supplement Plan called Blue Cross SECURE (offered in most states) that is not guaranteed issue, meaning you can lower your premium if you can answer some screening health questions:

• What is your height and weight?
• In the past 3 years, have you been diagnosed, had drug therapy, or hospitalization for:
  • ALS
  • Alzheimer’s
  • Cancer except basal cell or squamous cell cancer of the skin
  • Chemical dependence
  • Diabetes with amputation or complications
  • Heart conditions
  • Kidney failure
  • Multiple Sclerosis
  • Parkinson’s
  • Respiratory conditions requiring oxygen
  • Stroke
  • Transplant except corneal

If you pass the screening, you can save 15-20% on your premiums now and going forward.  If you are making any changes, be sure you are staying on a Medicare supplement plan and not switching to Medicare Advantage.  The easiest way to make this change is to contact your Medicare insurance agent.  You can also call 855-745-6910, but be prepared for a lengthy call.

Conclusion

At a time when healthcare costs keep rising, taking a few minutes to follow the above steps can result in some unexpected savings.  Please contact us if we can be helpful in answering any of your questions.

Disclosure:

This article contains general information that is not suitable for everyone. The information contained herein should not be constructed as personalized investment advice. Reading or utilizing this information does not create an advisory relationship. An advisory relationship can be established only after the following two events have been completed (1) our thorough review with you of all the relevant facts pertaining to a potential engagement; and (2) the execution of a Client Advisory Agreement. There is no guarantee that the views and opinions expressed in this article will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.

Strategic Wealth Partners (“SWP”) is d/b/a of, and investment advisory services are offered through, Kovitz Investment Group Partners, LLC (“Kovitz), an investment adviser registered with the United States Securities and Exchange Commission (SEC). SEC registration does not constitute an endorsement of Kovitz by the SEC nor does it indicate that Kovitz has attained a particular level of skill or ability. The brochure is limited to the dissemination of general information pertaining to its investment advisory services, views on the market, and investment philosophy. Any subsequent, direct communication by SWP with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Kovitz Investment Group Partners, LLC, please contact SWP or refer to the Investment Advisor Public Disclosure website (http://www.adviserinfo.sec.gov).

For additional information about SWP, including fees and services, send for Kovitz’s disclosure brochure as set forth on Form ADV from Kovitz using the contact information herein. Please read the disclosure brochure carefully before you invest or send money (http://www.stratwealth.com/legal).