How the Inflation Reduction Act Impacts Retirees

A lot of times we’ll see a bill or an act put into place, but you may be wondering what impact that really has on you. So here in 2022 is the Inflation Reduction Act and specifically what impact did that have for retirees? And we’re seeing the primary impact involves prescription drugs. So beginning in 2025 Medicare recipients will have $2K cap on their annual out-of-pocket prescription drug expenses. So under the current law, the Medicare program is banned from negotiating different drug prices. So you may be paying the current market price which I’m sure a lot of you that are watching have witnessed that as prescription drug prices maybe have been climbing over time. The expectation is that ultimately with this competition, the drug companies are going to, in order to compete be dropping their prescription drug costs to make it more affordable. Medicare will phase this in by negotiating on the 10 most expensive drugs beginning in 2026. And then it’s in 2027 they’ll have it down to 15. And then in 2029, the most expensive 20 drugs. So again, that’s going to be changing as time moves along. Another area is insulin price cuts for Medicare recipients is something that those with Diabetes are going to be thankful for is they’re going to be reducing that to $35 per month for insulin. There’s also no cost vaccines including I guess the Shingles, annual flu shot. So Medicare will be required to provide any vaccines recommended by the CDCs advisory committee on immunization practices at no cost to Medicare recipients. So the biggest thing that we find in retirement that’s changed over the past decade or more is health insurance. And that’s so vital when you’re approaching retirement and you’re not quite sure yet what your budget looks like. You’re going to be wanting to do your research or that’s where we have a team here at Centennial Wealth Advisory that specialized in health care and what those costs might look like as you’re building your plan and trying to determine what those costs are going to look like for you in retirement. Health care is going to be a key area that you’re going to want to be paying attention to. So that’s not only leading up to age 65 when you’re shopping around the different marketplace plans and how you may want to structure your income to help with potential health care subsidies. But then also when you get to age 65 and it opens up for Medicare, different Medicare advantage or supplemental plans that you’ll be researching. That’s where we’re hopeful you give us a call and we can help sit down with you and help evaluate all your different plans. A lot of times we’ll see a bill or an act put into place, but you may be wondering what impact that really has on you. So here in 2022 is the Inflation Reduction Act and specifically what impact did that have for retirees? And we’re seeing the primary impact involves prescription drugs. So beginning in 2025 Medicare recipients will have $2K cap on their annual out-of-pocket prescription drug expenses. So under the current law, the Medicare program is banned from negotiating different drug prices. So you may be paying the current market price which I’m sure a lot of you that are watching have witnessed that as prescription drug prices maybe have been climbing over time. The expectation is that ultimately with this competition, the drug companies are going to, in order to compete be dropping their prescription drug costs to make it more affordable. Medicare will phase this in by negotiating on the 10 most expensive drugs beginning in 2026. And then it’s in 2027 they’ll have it down to 15. And then in 2029, the most expensive 20 drugs. So again, that’s going to be changing as time moves along. Another area is insulin price cuts for Medicare recipients is something that those with Diabetes are going to be thankful for is they’re going to be reducing that to $35 per month for insulin. There’s also no cost vaccines including I guess the Shingles, annual flu shot. So Medicare will be required to provide any vaccines recommended by the CDCs advisory committee on immunization practices at no cost to Medicare recipients. So the biggest thing that we find in retirement that’s changed over the past decade or more is health insurance. And that’s so vital when you’re approaching retirement and you’re not quite sure yet what your budget looks like. You’re going to be wanting to do your research or that’s where we have a team here at Centennial Wealth Advisory that specialized in health care and what those costs might look like as you’re building your plan and trying to determine what those costs are going to look like for you in retirement. Health care is going to be a key area that you’re going to want to be paying attention to. So that’s not only leading up to age 65 when you’re shopping around the different marketplace plans and how you may want to structure your income to help with potential health care subsidies. But then also when you get to age 65 and it opens up for Medicare, different Medicare advantage or supplemental plans that you’ll be researching. That’s where we’re hopeful you give us a call and we can help sit down with you and help evaluate all your different plans. A lot of times we’ll see a bill or an act put into place, but you may be wondering what impact that really has on you. So here in 2022 is the Inflation Reduction Act and specifically what impact did that have for retirees? And we’re seeing the primary impact involves prescription drugs. So beginning in 2025 Medicare recipients will have $2K cap on their annual out-of-pocket prescription drug expenses. So under the current law, the Medicare program is banned from negotiating different drug prices. So you may be paying the current market price which I’m sure a lot of you that are watching have witnessed that as prescription drug prices maybe have been climbing over time. The expectation is that ultimately with this competition, the drug companies are going to, in order to compete be dropping their prescription drug costs to make it more affordable. Medicare will phase this in by negotiating on the 10 most expensive drugs beginning in 2026. And then it’s in 2027 they’ll have it down to 15. And then in 2029, the most expensive 20 drugs. So again, that’s going to be changing as time moves along. Another area is insulin price cuts for Medicare recipients is something that those with Diabetes are going to be thankful for is they’re going to be reducing that to $35 per month for insulin. There’s also no cost vaccines including I guess the Shingles, annual flu shot. So Medicare will be required to provide any vaccines recommended by the CDCs advisory committee on immunization practices at no cost to Medicare recipients. So the biggest thing that we find in retirement that’s changed over the past decade or more is health insurance. And that’s so vital when you’re approaching retirement and you’re not quite sure yet what your budget looks like. You’re going to be wanting to do your research or that’s where we have a team here at Centennial Wealth Advisory that specialized in health care and what those costs might look like as you’re building your plan and trying to determine what those costs are going to look like for you in retirement. Health care is going to be a key area that you’re going to want to be paying attention to. So that’s not only leading up to age 65 when you’re shopping around the different marketplace plans and how you may want to structure your income to help with potential health care subsidies. But then also when you get to age 65 and it opens up for Medicare, different Medicare advantage or supplemental plans that you’ll be researching. That’s where we’re hopeful you give us a call and we can help sit down with you and help evaluate all your different plans. A lot of times we’ll see a bill or an act put into place, but you may be wondering what impact that really has on you. So here in 2022 is the Inflation Reduction Act and specifically what impact did that have for retirees? And we’re seeing the primary impact involves prescription drugs. So beginning in 2025 Medicare recipients will have $2K cap on their annual out-of-pocket prescription drug expenses. So under the current law, the Medicare program is banned from negotiating different drug prices. So you may be paying the current market price which I’m sure a lot of you that are watching have witnessed that as prescription drug prices maybe have been climbing over time. The expectation is that ultimately with this competition, the drug companies are going to, in order to compete be dropping their prescription drug costs to make it more affordable. Medicare will phase this in by negotiating on the 10 most expensive drugs beginning in 2026. And then it’s in 2027 they’ll have it down to 15. And then in 2029, the most expensive 20 drugs. So again, that’s going to be changing as time moves along. Another area is insulin price cuts for Medicare recipients is something that those with Diabetes are going to be thankful for is they’re going to be reducing that to $35 per month for insulin. There’s also no cost vaccines including I guess the Shingles, annual flu shot. So Medicare will be required to provide any vaccines recommended by the CDCs advisory committee on immunization practices at no cost to Medicare recipients. So the biggest thing that we find in retirement that’s changed over the past decade or more is health insurance. And that’s so vital when you’re approaching retirement and you’re not quite sure yet what your budget looks like. You’re going to be wanting to do your research or that’s where we have a team here at Centennial Wealth Advisory that specialized in health care and what those costs might look like as you’re building your plan and trying to determine what those costs are going to look like for you in retirement. Health care is going to be a key area that you’re going to want to be paying attention to. So that’s not only leading up to age 65 when you’re shopping around the different marketplace plans and how you may want to structure your income to help with potential health care subsidies. But then also when you get to age 65 and it opens up for Medicare, different Medicare advantage or supplemental plans that you’ll be researching. That’s where we’re hopeful you give us a call and we can help sit down with you and help evaluate all your different plans. A lot of times we’ll see a bill or an act put into place, but you may be wondering what impact that really has on you. So here in 2022 is the Inflation Reduction Act and specifically what impact did that have for retirees? And we’re seeing the primary impact involves prescription drugs. So beginning in 2025 Medicare recipients will have $2K cap on their annual out-of-pocket prescription drug expenses. So under the current law, the Medicare program is banned from negotiating different drug prices. So you may be paying the current market price which I’m sure a lot of you that are watching have witnessed that as prescription drug prices maybe have been climbing over time. The expectation is that ultimately with this competition, the drug companies are going to, in order to compete be dropping their prescription drug costs to make it more affordable. Medicare will phase this in by negotiating on the 10 most expensive drugs beginning in 2026. And then it’s in 2027 they’ll have it down to 15. And then in 2029, the most expensive 20 drugs. So again, that’s going to be changing as time moves along. Another area is insulin price cuts for Medicare recipients is something that those with Diabetes are going to be thankful for is they’re going to be reducing that to $35 per month for insulin. There’s also no cost vaccines including I guess the Shingles, annual flu shot. So Medicare will be required to provide any vaccines recommended by the CDCs advisory committee on immunization practices at no cost to Medicare recipients. So the biggest thing that we find in retirement that’s changed over the past decade or more is health insurance. And that’s so vital when you’re approaching retirement and you’re not quite sure yet what your budget looks like. You’re going to be wanting to do your research or that’s where we have a team here at Centennial Wealth Advisory that specialized in health care and what those costs might look like as you’re building your plan and trying to determine what those costs are going to look like for you in retirement. Health care is going to be a key area that you’re going to want to be paying attention to. So that’s not only leading up to age 65 when you’re shopping around the different marketplace plans and how you may want to structure your income to help with potential health care subsidies. But then also when you get to age 65 and it opens up for Medicare, different Medicare advantage or supplemental plans that you’ll be researching. That’s where we’re hopeful you give us a call and we can help sit down with you and help evaluate all your different plans.