In this episode of Protecting and Preserving Wealth, we dive into the upcoming changes to Medicare for 2025, focusing on critical issues that affect both current Medicare recipients and those who have yet to claim it. Bruce Hosler and Alex Koury from Hosler Wealth Management discuss Medicare enrollment, premium penalties, and significant updates coming in the next few years.

We start by addressing the complexities surrounding Medicare enrollment for individuals turning 65. Bruce highlights a key nuance: while it may sometimes be beneficial to stay on a company’s health plan, particularly if it's cheaper, there’s a catch. If you’re on a high-deductible health plan, it may not offer “credible coverage” for Medicare Part D, which covers prescription drugs. If you miss getting a Part D plan, you could face costly penalties later. The message here is to ensure you’re covered, even if you delay Medicare enrollment.

Alex introduces one of the biggest changes coming in 2025: a new cap on out-of-pocket Part D drug expenses, set at $2,000 annually. This reform eliminates the confusing "donut hole" many have faced in recent years, where prescription costs shift dramatically at certain thresholds. While this is a win for those with high prescription costs, Bruce and Alex emphasize the importance of regularly reviewing Medicare Advantage plans, as changes to drug formularies, premiums, and deductibles could affect out-of-pocket costs.

Bruce stresses that regular Medicare typically offers more flexibility in choosing specialists or medical facilities, like the Mayo Clinic, whereas Medicare Advantage plans can be restrictive. This is crucial for those considering future healthcare needs, as Medicare Advantage may not cover all specialists or provide access to top-tier care.

The episode wraps up by discussing the expansion of mental health services under Medicare, starting in 2025. More providers, including mental health counselors and addiction specialists, will be covered, reflecting a growing recognition of the importance of mental health care in retirement.

Overall, this episode is a must-listen for anyone navigating Medicare, providing clear guidance on how to avoid penalties, manage drug costs, and ensure access to the best care as these changes roll out.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

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