Becker's Healthcare February 13, 2025
Payers are navigating through the second year of major Inflation Reduction Act changes.
Beginning in 2025, Medicare beneficiaries have a maximum out-of-pocket limit of $2,000 annually. The change led Medicare Part D plan sponsors to increase premiums, which the government later offset with a premium stabilization demonstration program.
On fourth-quarter earnings calls, insurers CFOs discussed how they expect the regulatory changes to impact their medical spending and the seasonality of their earnings in 2025.
- UnitedHealth Group CFO John Rex said the Inflation Reduction Act changes would affect the company’s medical benefit ratio in 2025.
Prescriptions for some high-cost drugs increased faster than the company expected, as “drug companies took early advantage of the Inflation Reduction Act,”...
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