This post may be a bit early as we’re still awaiting final guidance from the Centers for Medicare and Medicaid Services (CMS), but we wanted to alert you to an upcoming change that could have a significant impact on Medicare-eligible employees and dependents who currently have group health coverage. Starting in 2025, Medicare Part D plans will have a $2,000 out-of-pocket limit. As CMS explains, this change, which is part of the Inflation Reduction Act, also includes measures like a $35 cap on insulin and new authority for Medicare to negotiate prices for certain high-cost drugs.

We want to point out a couple big changes to the Medicare effective dates for people who sign up during their Initial Enrollment Period (which begins three months before the month they turn 65 and ends three months after they turn 65) or during the General Enrollment Period (January 1 – March 31 each year). These changes went into effect beginning in 2023 and are detailed on this page of the Medicare.gov website.