If you are a Medicare enrollee who is hoping to reduce prescription drug costs, new retirement legislation – the Inflation Reduction Act – could help. This Act is aimed at Medicare Part D enrollees to help with saving money by improving access to affordable treatments and strengthening the Medicare program.
What is the Inflation Reduction Act and How Could It Help?
The Inflation Reduction Act covers new and reinstated tax laws that can impact both individual investors and retirees, as well as businesses. Some of the Inflation Reduction Act’s highlights include:
- Capping the cost of certain prescription medications
- Negotiations with drug companies to obtain better prices
- Allowing more access to various types of vaccines
For example, the cost of a month’s supply of each Medicare Part D-covered insulin is capped at $35 – and you do not have to pay a deductible for insulin. In addition, beginning in 2024, if you have prescription drug costs that are high enough to reach the catastrophic coverage phase in your Medicare drug coverage, you will not have to pay coinsurance or a copayment.
Further, those who are covered under a Medicare Part D prescription drug plan will pay nothing out-of-pocket for vaccines like that for shingles, provided that the vaccine is recommended by the Advisory Committee on Immunization Practices.
The changes to Medicare Part D costs alone are estimated to save approximately $34 billion – and combined with other government expense reductions, this Act could even help with reducing inflationary pressures, and in turn, reduce the risk of a possible recession.
Other areas where The Inflation Reduction Act can help individuals and families of all ages include lowering the costs of:
- Overall healthcare coverage
- Home energy
- Electric vehicles
With lowered costs, you could see more net spendable income in your budget. And if you’re in or nearing retirement, this can be a welcome relief – especially if you are living on a fixed income.
Are You Generating Enough Retirement Income for Your Needs?
As you plan your current and future income and expense needs, one of the key factors is having a guaranteed income “floor” that you can count on to arrive on a regular basis, for as long as you live, regardless of how long that may be.
One option for achieving this is through an annuity. These financial vehicles are designed for generating ongoing income, either right away (i.e., at the time of purchase), or at a time in the future. Annuities can also offer other enticing benefits, too, like tax-deferred growth, and provisions for paying long-term care and other critical or chronic healthcare services.
But not all annuities are the same. So, if you are considering the purchase of an annuity, it is recommended that you first discuss your specific needs with a retirement income specialist. That is where Annuity Gator can help.
How an Annuity and Retirement Income Specialist Can Help
At Annuity Gator, our primary mission is on educating consumers and financial professionals on how annuities work, and where they may (or may not) fit into one’s overall financial and retirement plan.
So, if you would like to learn more about generating one or more reliable streams of income in retirement, give Annuity Gator a call and set up a time to chat with one of our retirement experts.
You can reach us by calling (888) 440-2468
, or feel free to send us an email with any questions that you have via our secure online contact form
. We look forward to meeting you.