I read an article today that made me say, “Oh come on! Give me a break.” The government is telling us that inflation peaked at about 6% last year and has currently “cooled” to 3%. They must think I’m an idiot.
My homeowner’s insurance is up 30% this year, my electric bill is up about 15%, my grocery bill is averaging about 16% more than last year, and many items have doubled in price in the past four years. Do you remember when you could get a full grocery cart of food for $100? That $100 now gets us about three bags of groceries, maybe four if you’re as good with coupons as my wife Peg. She knows where and when to buy.
This article I mentioned, which was posted on July 17th, says to expect medical costs to rise 8% or more in 2025. Just dandy… If you like to read it, I’ve posted this article on my Adams Insurance Facebook page. Plus, Medicare is making some behind the scenes changes that will negatively affect the insurance company’s bottom lines. I’m sure you can guess how the insurance companies will make up the difference: with the consumers (you and me). Double dandy. Can you sense my sarcasm?
My wife Peg and I are both on Medicare, and because we aren’t young anymore, we have more frequent medical visits.
Now, I am very thankful to have Medicare for our medical insurance. The premiums are a fraction of what we were paying before turning 65, the benefits are much better, and we have no deductibles. Peg and I both have Medicare Advantage plans, and they’ve been working well during this challenging season in our lives. A lot of doctor visits!
So perhaps you are wondering, “What might we be expecting in 2025 for Medicare?” If you are following the gist of this blog, you can expect to have higher medical costs. Expect your Medicare supplement premiums to increase more than usual. We are already seeing increases across the board of 10% – 15% on supplement premiums and it’s likely to get worse.
Expect prescription drug plan premiums to increase. What we are hearing from some of the top executives is that premiums could double or triple next year.
If you have a Medicare Advantage plan, like my wife and I do, you will likely see small changes in places like copayments, maximum out of pockets or perhaps lower dental/vision/hearing benefits. We anticipate each plan will adjust benefits in their own way. For now, we just have to be patient until each of the companies tell us where they will make their adjustments. But adjustments are coming.
Therefore, we urge you to pay close attention to emails from us. And it’s crucial that you read the Annual Notice of Change (ANOC) mailed to you by your Medicare plan. It is mandatory that companies send this to you. These are generally in your mailbox in late September or early October. I know you receive a lot of mail around this time, but please keep a close eye on this important information from your current company.
We anticipate appointments filling up faster than usual this year, so please contact us early if you’re concerned about any changes listed in your Annual Notice of Change or if your Supplement premium increase is not comfortable for you. Please call 317-606-5426 to set up an appointment. This may be a challenging year, but we are ready to help you.