The goal for the Inflation Reduction Act of 2022 (IRA 2022) is to slow inflation, a great benefit to low-income seniors and those living on a fixed income, says a recent article titled “How the Inflation Reduction Act Impacts Retirees” from U.S. News & World Report. But there’s more for seniors.

The bill will help tackle health care costs for seniors, which have skyrocketed in recent years. So many of these provisions don’t go into effect for a few years, but something in the near future is better than nothing.

Other eventual benefits to seniors:

• Medicare may negotiate the prices on prescription drugs
• A cap on out-of-pocket costs for Medicare enrollees at $2,000
• A dramatic cost-reduction on co-pays for insulin for Medicare recipients
• No cost vaccines for Medicare Part D beneficiaries

Under current law, Medicare is banned from negotiating drug prices and is forced to pay market prices. When this law goes into effect, Medicare will be able to negotiate with the pharmaceutical companies and some drug prices should drop.

One caveat: the negotiated prices will be phased in over time. Pharmaceutical companies have a strong presence in Washington. Powerful lobbyists weren’t giving the store away. In 2026, Medicare may negotiate the price for the 10 most expensive drugs, in 2027, the 15 most expensive drugs and in 2029, the 20 most expensive drugs.

Some drugs have put severe cost pressures on Medicare Part D, so the government’s ability to negotiate prices will be impactful.

Rising health care and prescription prices are especially challenging to retirees living on a fixed income. Another big benefit of the new law is limiting the out-of-pocket responsibility to retirees for prescription drugs. However, it will be three years before this goes into effect, starting in 2025.

This aspect of the bill will be especially beneficial to Medicare Part D beneficiaries who take expensive drugs for cancer or multiple sclerosis. According to the Kaiser Family Foundation, an estimated 1.4 million Medicare Part D enrollees spend well over $2,000 in out-of-pocket costs for prescription drugs in 2020.

No-cost vaccines will be a boon to retirees, who will be able to get the shingles vaccine, the annual flu shot and other vaccines at no cost.

Enactment of the provisions is still several years away, but the future looks brighter for Medicare beneficiaries, a good thing in the face of inflation and rising costs for everything from apples to zucchini.

BOOK A CALL with me, Ted Vicknair, Louisiana Board Certified Estate Planning and Administration Specialist, Louisiana Board Certified Tax Law Specialist, and Louisiana CPA to learn more about estate planning in Louisiana, incapacity planning, and Louisiana asset protection.

If you liked this article, “Inflation Reduction Act Puts Prescription Drug Relief in Sight for Seniors” read also these additional articles: Ask Mom if She has a Will and What Should I Know About Long-Term Care? and What Do Seniors Say About Aging in Place? and The Difference between Revocable and Irrevocable Trust

Reference: U.S. News & World Report (Sep. 15, 2022) “How the Inflation Reduction Act Impacts Retirees”

About 50% of adults say that assistance for older adults should be funded by Medicare and Medicaid, according to an Associated Press-NORC Center poll.

MSN’s recent article entitled “Bipartisan support for policies to pay long-term care costs: Poll” says that 75% of adults surveyed say long-term care should be funded through Medicare Advantage or supplemental insurance programs. Close to two-thirds of respondents also said they’d support a government-administered insurance program, government funding for low-income people to receive long-term care at home and Social Security earnings credit or tax breaks for those providing long-term care to a senior.

Overall, 66% of respondents said they think it’s the federal government’s responsibility to make sure all people in the U.S. have health insurance coverage, with 73% of people aged 18-49 likely to support vs. 53% of those aged 50 and older.

Republican and Democratic responses were about the same, according to the poll.

About the same number of Republicans and Democrats favor nontaxable funds to pay for long-term care insurance—about 70%. The largest party difference was about the option for low-income people to receive government-funded, long-term care in their homes. Roughly 84% of Democrats supported this, compared to 55% of Republicans.

Overall public satisfaction with the U.S. healthcare system is low. Just 12% think the government is handling healthcare very or extremely well. When asked about healthcare specifics, 74% of adults said the U.S. handles prescription medication costs or mental healthcare “not too/not at all well,” and 70% said the same about mental healthcare.

The survey found that whites had a more negative view of the U.S. healthcare system compared to black and Hispanic adult respondents. When looking at healthcare for older adults, 56% of white adults think it is not too/not at all handled well, with 49% of Hispanic adults and 44% of black adults responding the same.

The poll consisted of 1,505 interviews between July 28 and August 1, with a 3.6% margin of error.

Under current law, MediCARE will only pay for the first 100 days of long term care.  After that, to pay for long term care, you need to either (a) have long term care insurance, (b) private pay out of your own funds (which will run at least $6,500 per month up to $9,000 per month in Louisiana); or (c) qualify for MediCAID Long Term Care benefits.  MediCAID is different from MediCARE.  MediCAID is a means based program intended for the poor, so to qualify and avoid losing your assets to nursing home poverty, it is best to get your plan in order well before you need to go into the nursing home.  I can help save at least half your assets even with a MediCAID crisis plan, but it is better to save all of your assets rather than merely half.

BOOK A CALL with me, Ted Vicknair, Louisiana Board Certified Estate Planning and Administration Specialist, Louisiana Board Certified Tax Law Specialist, and Louisiana CPA to learn more about estate planning in Louisiana, incapacity planning, and Louisiana asset protection.

If you liked this article, “What Do People Think About Government-Paid Long-Term Care?” read also these additional articles: The Difference between Revocable and Irrevocable Trust and What Is Asset Protection Planning? and Do I Need a Prenup? and Can a 529 Plan Help with Estate Planning?

Reference: MSN (Sep. 12, 2022) “Bipartisan support for policies to pay long-term care costs: Poll”

On August 23, 2022, the Federal Trade Commission (FTC) issued an alert that scammers offering free COVID-19 tests have been targeting Medicare recipients online, by phone, and through television advertisements.  You can read the article here: Free COVID Test Scam Targets People on Medicare

The goal of these scammers is to obtain your Medicare information and then fraudulently bill Medicare.  The FTC warns that people who sign up for these “free” tests never receive them.  Once they have a person’s Medicare information, scammers also try to bill Medicare for other products and services that person doesn’t need and didn’t receive.

You can take steps to avoid being taken advantage of by scammers.  First, be aware that Medicare presently covers eight free COVID tests per month.  Medicare recipients simply need to visit a participating pharmacy.  Medicare does not call people directly to offer them free tests.  So, be wary of any offers or advertisements and do not give anyone your personal information.

The bottom line is that you should never give your Medicare or other personal information to anyone who contacts you offering any free service.  Fraudulent charges to your Medicare insurance can affect your benefits and coverage, and prevent you from getting the medical services you need.  You can double-check your Medicare Summary Notice to see whether you are being charged for any services or products you did not receive or authorize.

If you believe you have information related to a Medicare scam, you can report it online or by calling 1-877-FTC-HELP.

BOOK A CALL with me, Ted Vicknair, Louisiana Board Certified Estate Planning and Administration Specialist, Louisiana Board Certified Tax Law Specialist, and Louisiana CPA to learn more about estate planning in Louisiana, incapacity planning, and Louisiana asset protection.

If you liked this article, “Alert: Scam Targeting Medicare Recipients” read also these additional articles: CMS Issues Updated Guidance Intended to Improve Quality of Nursing Home Care and What Happens If Couple Divorce and Own Business? and Can Some Foods Help Prevent Alzheimer’s? and Wayward Senior Tracked by Bluetooth Technology