INFLATION, MEDICARE, AND WHY EVERYTHING’S GETTING MORE EXPENSIVE
The first time I voted for president was in 1980. The race was between Jimmy Carter and Ronald Reagan. Some of you may remember the big political issue, INFLATION. Prices were going up fast then. I remember my dad being thrilled that his bank CD paid 11% interest. Mortgage rates were as high as 18%. Gas was high. I flipped out when premium gas broke 70 cents per gallon for my 1964 Buick Wildcat. Everything was going up. In college, I went to Mexico to learn Spanish. Mexico was going through something worse: hyperinflation. I had to be smart with money. I exchanged only what I needed in the morning. If I went out at night, I’d exchange more. The peso was losing value every hour. I was eating in five-star restaurants for $10. I took taxis everywhere. I felt like a rock star.
• Medicare Advantage plan offerings are reducing or raising costs to adjust. • Prescription drug spending is up more than 11% over last year.
Even if your plan looks the same on paper, it may cost you more next year.
What This Means for You If you’re on a fixed income or Social Security, this hits hard. When Medicare costs go up, but your income doesn’t, it gets harder to:
• Afford your plan • See your doctor
• Pay for medications • Stay ahead of the bills
Some people don’t notice until it’s too late. They go to the pharmacy in January and find out their drug isn’t covered anymore or their copay has tripled. This is why it’s so important to check your plan every year. Even if you didn’t change anything, your plan might have. Why Is This Happening? Three reasons: 1. The pandemic pushed health care to the limit. Costs rose for hospitals, doctors, nurses, and supplies. 2. Inflation is still raising prices on medicine, wages, and services. 3. Medicare is adjusting to all of it by raising costs or cutting back. Health insurance usually reacts slowly, but now we’re seeing all the changes at once. And that’s why many people are feeling the pinch. My Advice to You I’ve worked with Medicare for many years, and here’s what I tell my clients now: ✅ Review your plan every year. Don’t assume it’s still the best for you. ✅ Send me your medications. We’ll make sure they’re still covered at the best price. ✅ Ask questions. I’d rather help you now than fix a problem later. ✅ Watch for changes. Deductibles, copays, and coverage are all changing. ✅ Stay calm. We’ll get through this like we always do. One Last Thought This year reminds me a lot of 1984. But back then, I was just learning. Now, I know what to do. I see the pain inflation causes. I also see the ways we can work around it. We can’t stop prices from going up, but we can be smart about our choices. We can find the plan that fits your needs and budget, even in a hard year.
But I also saw families struggling badly. Inflation hurt a lot of people.
That memory has stuck with me.
And lately, it’s felt a lot like those old days again.
What’s Happening Now After the pandemic, prices started going up fast again. Groceries. Gas. Rent. But now it’s hitting health care, especially Medicare. Health care usually comes last in the inflation cycle. But when it hits, it hits hard. Here’s what we’re seeing now. • Medicare Part B premiums are going up (expected to rise over 11% in 2026). • Deductibles and copays are going up, too. • Medicare Part A (hospital care) is also raising costs. • Medicare Supplement (Medigap) plans are increasing premiums.
If you’re worried or confused, don’t go it alone. I’m here to help.
2 • OmahaInsuranceSolutions.com
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