Inflation Reduction Act
Have you heard of something called the Inflation Reduction Act (IRA)? If not, that’s OK. This news story breaks it all down for you. Check back for updates between now and the start of the Option Selection Period in October.
What it is: The IRA was signed in August 2022. The Act is a multiyear rollout of governmental changes that affect how Medicare coverage works. Some of the changes benefit the government, some benefit plan administrators, and others benefit the plan participants.
Why it is important: The IRA changes affect all Medicare prescription drug plans, including the Health Options Program. Starting in 2025, the government is requiring changes that will significantly change Part D plan designs, for example, the Coverage Gap is being eliminated, and there will be a $2,000 TrOOP maximum for Medicare Part D prescription drugs.
What it means to you: If you are enrolled in the Health Options Program, your current benefits will continue through December 31, 2024. The Health Options Program is carefully reviewing the requirements of the IRA and what they mean for future plan designs. As the 2025 Option Selection Period gets closer, we will keep you updated with what you need to know. If you are enrolled in another plan, reach out to their customer service team with questions.