We strive to keep you informed about the latest Medicare news. Each month, we recap the top information you need to know about recent developments in the Medicare industry. This month, we cover the benefit of enrolling in Medicare Advantage over Original Medicare, a new rule regarding prescription drug costs, 2020 HSA contribution limits and more!
Could You Save Money by Enrolling in Medicare Advantage Instead of Original Medicare?
A recent report by the Kaiser Family Foundation shows that people who transitioned from Original Medicare to Medicare Advantage saved $1,253 in Medicare costs from 2015 to 2016. This decrease in cost included people with breast or prostate cancer ($1,517), asthma ($1,410) and diabetes ($1,072).
Drug Prices Will Soon Be Included in TV Commercials
The Centers for Medicare & Medicaid Services (CMS) recently announced that television ads for prescription drugs that are covered under Medicare or Medicaid will be required to include the prescription’s list price if they are $35 or more for a one-month supply.
The current administration hopes this initiative will ultimately lower drug prices and empower individuals to compare drug prices. The Health and Human Services Secretary Alex Azar said, “If you think the cost of your drug will scare people from buying your drugs, then lower your prices.”
While some Medicare beneficiaries will pay more or less than this price based on their insurance and other factors, it’s a step toward informing people of what their prescriptions may cost. Remember, you can always ask your doctor if you could save money by getting the generic version of a prescription and should consider if it would be less expensive to pick it up at one pharmacy over another.
Just Announced: 2020 Increase in HSA Contribution Limits
The IRS has announced the 2020 contribution limits for health savings accounts (HSAs), so if you are contributing to your HSA and plan to continue working past June of 2020, this applies to you.
In 2020, you can contribute up to $3,550 for individual coverage (an increase of $50 from 2019) and $7,100 for family coverage (an increase of $100 from 2019).
If you’re still working and have an HSA through your employer, it’s important to note that you will need to stop contributing to it six months before you sign up for Medicare Part A.
2020 Increase in Medicare Part D Maximum Out-of-Pocket Amount
The maximum amount you’ll pay out-of-pocket for Medicare Part D will increase to $6,350 in 2020, up from $5,100 in 2019.
We’d Love to Hear from You!
If you are not yet a RetireMEDiQ client and have questions about how these topics may affect you as you approach retirement, contact one of our advisors at 1-866-600-5638.