GREENSBORO, N.C. — The U.S. House of Representatives is expected to pass the Inflation Reduction Act Friday. Among other things, experts say it will be a game-changer for millions of seniors on Medicare.
Catherine Sevier from the Generations Study Group and AARP, and Steve Edmonds from Alliance Insurance Services are 2 Wants to Know's Medicare experts. They talked about how the Inflation Reduction Act can help Medicare recipients.
"It's gonna impact them in probably a couple of ways that will be big," said Edmonds. "One way is going to be a cap put on the out-of-pocket spending of most beneficiaries of $2,000."
Edmonds says the cap now is a lot more, with the catastrophic level being around $7,000.
"Another part that could be a game changer to some people that get the low-income subsidy, which is help that the government gives to beneficiaries to pay for prescription drugs, that's also going to be increased," said Edmonds. "More folks will be able to qualify for that."
Sevier said the AARP was heavily involved in getting the Inflation Reduction Act over the finish line.
"It is great news, and it's something that we've been working towards for a very long time," said Sevier. "One of the things I'm very excited about is the cap on insulin because people living with diabetes have to have their insulin every day. When you have a limited income and you have to decide between food and insulin, sometimes people cut their doses down just to be able to do both. So the cap on insulin prices to $35 a month is going to make a big difference to probably about 3 million people that receive Medicare."
It is important to note, that the insulin cap in the Inflation Reduction Act only applies to Medicare beneficiaries. There is no price cap for people with private insurance.
Medicare enrollment
AARP has a Medicare Question & Answer Tool. The tool clarifies eligibility and enrollment requirements and provides answers to questions on Medicare’s plan options, coverage, and costs in an easy-to-understand manner.
As a resource, you can also try Medicare.gov
Enrollment for Medicare is time-sensitive. If you're eligible for Medicare when you turn 65, Medicare.gov said you have a 7-month Initial Enrollment Period to sign up for Part A and/or Part B. The period begins 3 months before the month you turn 65, it includes the month you turn 65 and ends three months after your birthday month.
If you miss that 7-month window, Sevier said you will suffer a 10% penalty every 12 months, and that penalty doesn't go away once you start.
Medicare plans
Medicare Part A covers your inpatient hospital stays.
Medicare Part B is the premium that covers your doctor visits.
Medicare Part D covers prescriptions.
Medigap is extra insurance you can get to cover co-pays, deductibles and travel.
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NC Dept of Insurance SHIIP - Seniors Health Insurance Information Program.