New Medicare Rules in place for individuals working past 65.

 

This rule is part of the Inflation Reduction Act, which aims to cap out-of-pocket costs for seniors at $2,000 or less. However, this could lead to seniors who are still working and have employer-provided health insurance being mandated to change to a Medicare Advantage Plan or Prescription Drug Plan.

Beginning January 1st, employer-sponsored health plans may no longer be considered sufficient to avoid late enrollment penalties for Medicare Part D. This is due to the implementation of a $2,000 out-of-pocket maximum for Part D coverage. As a result, some employer plans will not offer coverage comparable to the new, improved Medicare Part D plans.

HEY YOU YEAH YOU THIS IS IMPORTANT

If you don’t have Medicare Part D or creditable drug coverage for 63 days or more after your initial Medicare enrollment period, you’ll pay a late enrollment penalty. This penalty is a percentage of your monthly Medicare Part D premium and lasts as long as you have Part D coverage. The longer you go without coverage, the higher the penalty.

The late enrollment penalty is calculated based on how many months you went without Medicare drug coverage. For each month without coverage, you’ll pay an extra 1% of the national base premium. In 2024 the national base premium is $34.70. times the number of months you went without creditable coverage. This penalty is added to your monthly Medicare Part D premium. Meet John a 70 year old retired janitor. John went with out creditable Part D coverage for 9 months and currently has a penalty of $3.12 per month. ($34.70 x 0.01 x 9 = $3.12)

• The rule: The Inflation Reduction Act includes a provision that caps out-of-pocket costs for seniors at $2,000 per year.
• The impact: This could force seniors who are still working and have employer-provided health insurance to switch to Medicare, even if they don't want to.
• What to do: If you're a senior who is still working, you should talk to your employer about your health insurance options. You may be able to stay on your employer's plan without penalty.

While the penalty never goes away. You do have a few options to discuss those options click here and a licensed agent will be in contact