NJ Life and Health Insurance Group
600 Mule Rd Unit 10 Toms River, NJ 08757
848-226-6897 | info@njlifeandhealth.com
Dear Valued Client,
As your trusted Medicare advisor, we have some very important news to share.
You may be aware some changes are coming to Medicare Part D for 2025. Namely, the Inflation Reduction Act (IRA) has imposed a $2,000 cap on Medicare Part D (prescription drug coverage) out of pocket expenses, and the Coverage Gap, also known as the “Donut Hole”, has been removed for 2025.
Unfortunately, the major changes do not end there. As of 2025, the most common Medicare Part D plans will no longer provide brokers with the nominal compensation used to cover the operational and compliance costs of reviewing, enrolling, and servicing clients in these plans. Therefore, brokers such as ourselves will no longer receive any compensation from the insurance companies for helping you evaluate your Medicare Part D coverage for 2025 this Annual Enrollment Period.
This change will drastically affect the ability of independent brokers to offer unbiased advice on plan choices, and as advocates for our Medicare clients, we are extremely upset with this outcome. The insurance companies and our competitors alike may use the changes as an opportunity to steer you into commissionable plans or Medicare Advantage plans that may not be the best options for you. Steering beneficiaries into a plan based on how we’ll be compensated goes against our values and we will not be introducing that bias into our evaluations.
With that in mind, and barring any reversal in these changes, we have decided to cease “brokering” Part D plans for 2025. But don’t fret! We’re still here to guide you! We’re still here to be your advocates! We’re just unable to do the extensive research necessary while abiding by the strict regulations of this program, and receive zero compensation from the insurance companies!
To support you in your Part D plan reviews this year, we will be offering two options:
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A FREE video tutorial and step by step written guide on how to use Medicare.gov to evaluate your plan options for next year and enroll in the plan that best suits your needs once the options go live on October 1st.
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We will provide an option to schedule an appointment for a Part D consultation, where you can meet with us in a consulting* capacity, and we will run the Medicare.gov evaluation for you and help you determine what plan will best suit you for next year. This option will come at a cost of $50.
Please don’t worry if you don’t want to pay this consultation fee. You CAN do this evaluation yourself. For many of you, a simple review of your Annual Notice of Changes that will be sent by your plan this month will provide all the information you need to make an informed decision on whether any changes are necessary.
Please stay tuned. You will receive the usual communication from us on how you would like to proceed for this year’s Annual Enrollment Period, with an option to choose the fee-based review or be sent the educational materials to run your own Part D evaluation.
We understand that these premium increases and this new consultation fee may be difficult to manage amongst the many rising costs you’ve seen this year. If these changes do lead you to consider other plan changes such as your Medicare Supplement or moving into a Medicare Advantage plan, we are still here to help as your trusted advisor, free of charge, to provide you with the unbiased advice you’ve come to expect.
Sincerely,
- The Team at NJ Life and Health Insurance Group
*Consultation To Be Provided Through NJLH Consulting Group, LLC