America's Benefit Specialist August-September 2022

CMS RELEASES 2023 PROJECTED MEDICARE BASIC PART D AVERAGE PREMIUM MEDICARE MATTERS

ed Plan N, 55% selected Plan G and 6.7% high-deductible Plan G. AAMSI worked with MedicareFAQ to obtain data. “I expect the trend to lower-cost options will continue for two reasons,” Slome said. “First, consumers are being bombarded with Medicare-focused television ads touting free coverage and benefits, making it harder to sell coverage that costs. Second, saving money is always a winner with many seniors who live on fixed or limited budgets.” A Chicago-area female turning 65 can ex pect to pay $117 monthly for Plan G from a popular Medigap insurer. The same insurer offers Plan N for $86-per-month, amount On July 29, the Centers for Medicare & Medicaid Services announced that the average basic monthly premium for stan dard Medicare Part D coverage is projected to be approximately $31.50 in 2023. This expected amount is a decrease of 1.8% from $32.08 in 2022. CMS releases the projected average basic monthly Part D premium—calculated based on plan bids submitted to CMS— annually to help beneficiaries understand overall Part D premium trends before Medicare Open Enrollment, when they can select from plan options for the upcoming benefit year. The Medicare Part D program helps people with Medicare pay for both brand name and generic prescription drugs. Part D remains one of Medicare’s most popular programs, with more than 49 million Medi care beneficiaries enrolled for prescription drug coverage. CMS continues to analyze changes to the Part D program carefully, and engages with stakeholders to identify

opportunities for improvements, particular ly for reducing costs. CMS is releasing additional information— such as the Part D national average monthly bid amount—to help Part D plan sponsors finalize their premiums and prepare for Medicare Open Enrollment. Medicare Open Enrollment for coverage beginning January 1, 2023 will run from October 15 to December 7, 2022. CMS anticipates releasing the 2023 premium and cost-sharing information for 2023 Medicare Advantage and Part D plans in September 2022. For more information on the Part D national average monthly bid amount, the Part D regional low-income premium subsidy amounts, the de minimis amount, the Medicare Advantage employer group waiver plan regional payment rates, and the Medicare Advantage regional preferred provider organization benchmarks, visit www.cms.gov/Medicare/Health-Plans/

MedicareAdvtgSpecRateStats/Rate books-and-Supporting-Data.html.

STUDY: SENIORS INCREASINGLY FAVOR LOWER-COST MEDIGAP INSURANCE OPTIONS

When it comes to choosing Medicare Supplement plan options, new-to-Medicare beneficiaries are opting for lower-cost plans, according to the American Association for Medicare Supplement Insurance. “Medigap remains a highly popular choice but there appears to be greater interest in lower-cost options,” explained Jesse Slome, AAMSI’s director. During the first six months of 2022, some 38% opted for Medi gap Plan N. Just over half (51%) selected Plan G coverage. Nearly six percent enrolled in a high-deductible Plan G (HDG) option. The association’s report examining 2021 new enrollees reported that 36.5% select

ing to a $372 annual savings. A Medigap HDG plan can be obtained for as little as $32 to $45 per month. In Chicago, men can expect to pay more for similar coverage: around $132 per month for Plan G, $97 for Plan N and $37 to $48 for HDG.

30 ABS | benefitspecialistmagazine.com