- Inflation Reduction Act makes FEHB enrollees able to benefit from Medicare part D.
- 17 FEHB Plans will offer a Medicare part D component in 2024.
- FEHB open season is the time to evaluate the costs and benefits of part D.
Medicare part D covers prescription drug costs and in the past, it was something federal retirees didn’t have to really worry about. But now, thanks mostly to the Inflation Reduction Act of 2022, that is no longer the case. Among other reforms, the act capped insulin costs at $35/month and made it so Medicare D premiums cannot go up more than 6% from the previous year.
Be prepared this FEHB Open Season, join our special webinar on November 28th
The prospect of adding Medicare D coverage to a federal retiree’s health insurance might also be appealing due to FEHB premiums increasing an average of 7.7% in 2024 and Medicare B premiums rising 5.9% - which will offset the 3.2% COLA for social security retirement benefits.
OPM has been encouraging FEHB plans to include Medicare part D components and for 2024, there will be 17 health plans that have part D coverage. All of these plans, except those offered through the carrier BCBS, will auto-enroll eligible individuals in Medicare part D. Those covered by Blue Cross Blue Shield (BCBS) will need to opt-in unless they are already enrolled in both parts A and B. If an FEHB enrollee has health insurance other than one of these 17 plans, they are still able to enroll in part D separately.
Need help navigating your FEHB decisions? Schedule an appointment with one of our fed-focused advisors or submit your questions to [email protected]
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Until Next Time,
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**Written by Benjamin Derge, Financial Planner, ChFEBC℠ The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
