Medicare Part D premium shock 2027

In 2027 my and Connie’s Part D premiums will increase from $72.30 to $130.00 per month and my deductible will increase from $615 to $700 per year (the maximum allowed). Those new premiums do not include IRMMA extra premiums. That’s quite a jump in out-of- pocket costs, I’ll cope, but given these premiums have nothing to do with income, such increases will be a true burden for many retirees. More consequences in retirement virtually unable to plan for. The Inflation Reduction Act significantly increased Part D premiums by shifting more costs to insurance companies. To ease that and help avoid immediate premium increases there were premium subsides. For 2027 officials determined “the prior subsidies as unnecessary handouts to insurers.” Of course, they are not any such handouts. The same claim was made- “slashing handouts”-when reducing payments to Medicare Advantage plans). I wonder if decision makers understand the concept of insurance? No matter… I could go into the political ideology of this, but my HD lips are sealed. But think of the logic. Insurance has a real cost, let’s say $100. Party A pays $40 and Person B pays $60. Party A decides it no longer wants to pay $40 determining it is a “handout” so drops to $20. The real cost still exists, insurance companies must cover costs, so Person B now pays $80. In this case there are about 65 million Persons B.

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