To Avoid Surprises, Review Your Medicare Coverage (Part D) Every Year

If you’re satisfied with your Medicare Part D or Medicare Advantage coverage, you don’t need to do anything, and it will continue in 2025. But be very careful, your benefit provider could have made changes that will increase your costs or make a medication that you need unavailable. 

Medicare Open Enrollment began October 15 and runs through December 7 for policies which will take effect on January 1, 2025.

By now, you should have received a “Notice of Change” from your 2024 provider indicating if premiums or costs for medications you use are changing. With medications, the pricing “tier” may change resulting in higher co-pays and occasionally a medication will be dropped from the formulary and not covered at all. There are many stories about retirees who got huge surprises the first time they tried to fill their maintenance prescription in a new year. 

In addition, your own prescription needs may have changed; if you no longer take a certain medication which was a big driver of your costs in 2024, you might be able to find less expensive coverage for 2025. Conversely, you may need a new medication that is priced high in your current plan.

Third, paying more in premiums for a Part D plan will sometimes save you enough money on co-pays to make those higher premiums worth it. So, when comparing plans, be sure to consider total costs; premiums plus copays!

Medicare.gov (https://www.medicare.gov/plan-compare) has great tools for comparing all plans, including Part D and Medicare Advantage plans, and, after you have entered your medications, it will display them with their costs along with premiums and projected total costs. Red Cross retirees can also get help from Alight (1-877-458-9657). Alight also offers an online tool for comparing coverages and costs at https://retiree.alight.com/redcross. Alight does not represent all plans, but remember: retirees who qualify for and want to continue their Health Reimbursement Account benefit must continue to purchase through Alight. In addition, your State Health Insurance Assistance Program (SHIP) provides personal help from trained counselors on all Medicare and Medicaid issues, free of charge. Use the locator tool at the SHIP website to find contact information for each state's program. 

If you have questions, please call ARCAN’s Retiree Connection Helpline at 202-303-8779 for guidance at support.  

Are You Ready For These Social Security Changes In 2025?

From Retallick Financial Group

Social Security is a pillar of financial stability for many retirees. If you’re one of the millions of older Americans collecting Social Security, or if you will be shortly, keeping up with changes to the program is important. 

Thankfully, the SSA commonly announces key changes to the program a few months in advance. Back in October, they announced some changes coming in 2025. Let’s walk you through some of them.

A 2.5% cost-of-living adjustment or (COLA) is coming next year, designed to help seniors on Social Security continue their standard of living despite inflation. This 2.5% increase will bring the average monthly benefit to $1,976, up from $1,927.

However, there’s a bit of a catch: The cost of Medicare Part B is also increasing next year, and the standard monthly premium will be about $10 higher.* So, since Medicare Part B premiums are taken automatically out of Social Security, those enrolled in Medicare will see a smaller increase in their Social Security benefits. 

There will also be an increase to the Social Security FRA (full retirement age) in 2025. “Workers born in the last eight months of 1958 will reach FRA at 66 and 8 months in 2025, while those born in early 1959 will reach FRA at 66 and 10 months.”

FRA is important because it determines the baseline benefits retirees receive. Claiming Social Security benefits before reaching FRA results in reduced benefits, while delaying taking benefits past FRA results in higher monthly payments, maxing out at age 70. 

There will also be an increase in maximum benefits in 2025. Social Security benefits are tied to not only the age a worker begins claiming benefits, but also their earning history. “Earning the maximum benefit requires consistently high income for 35 years and delaying payments until age 70, so only a small percentage of workers qualify.”

Maximum benefits starting in 2025: 

• If you begin benefits at age 62, the maximum will be $2,831.

• At age 65, it will increase to $3,374.

• At age 66, the maximum will be $3,795.

• At age 67 (FRA), it will increase to $4,04.

• At age 70, the maximum will be $5,108.

How to Access Red Cross Benefits When Your Spouse Dies

As with many benefits issues, the death of an American Red Cross retiree should be reported to the Benefits Service Center (BSC) by phone at 877-860-7526. Such a death may be reported by a spouse, family member, friend or legal representative of the deceased. The BSC representative will be able to assist with all benefits including pension, American Red Cross Savings Plan and medical benefits/life insurance as applicable. Even if the deceased retiree was receiving no benefits from the Red Cross at the time of passing, the death should be reported to the BSC to find out if the retiree had earned the Life Insurance benefit. Although this benefit was earned by a small number of retirees, it is worth a phone call to check. 

In addition, if a retiree was receiving any part of their benefit from John Hancock, Athene or Aetna, they will also need to be notified.

• Athene: 877-813-4249
• Aetna: 800-952-2700
• John Hancock: 800-624-5155

Reporting a death within a week or two allows enough time for a beneficiary to receive uninterrupted benefits. Anyone reporting a Retiree’s passing should be prepared with the deceased spouse’s: 

• Name
• Last four digits of SSN
• Address
• Date of Birth
• Date of Death
• Marital Status at time of death. 

The BSC representative will provide instructions for conveying a copy of the death certificate. If a surviving spouse is also a beneficiary, they should be prepared to provide basic info including their own social security number and date of birth. 

Call the Retiree Helpline if you have questions or need additional guidance: 202-303-8779