Welcome to June, my friends!
I have several things I hope will be interesting to you in this edition of the newsletter, and then a favor to ask at the end… but it’s a fun favor.
Here’s the agenda for this newsletter:
- Welcome new friends
- The 6% Rule
- Book Recommendation
- Words of Wisdom – The most epic road trip ever
Welcome New Friends
The subscriber count for this newsletter has more than TRIPLED since last month! 
I’m honored to have you all along, and thank you for being a part of my life.
If you ever want to see past newsletters, there is this page where you will find them:
Past Newsletters
Last month, I mentioned a unique estate planning tool we are working on.
We still have a couple spots left for those thinking about an estate plan.
See last month’s newsletter for more details on that: Last Month’s Newsletter
The 6% Rule Isn’t What You Think
I put out a video a couple weeks ago outlining the rumblings of the Part D increases on the horizon for 2025.
Some other agents and viewers commented about the Inflation Reduction Act prohibiting plans from increasing monthly plan premiums by more than 6% for 2025.
It’s a wonderful hope, but unfortunately, it is not correct.
I released a video that goes over this in more detail here:
YouTube Video
There are 3 terms related to Part D premiums, and the 6% rule only applies to one of them.
Unfortunately, that one is not your monthly premium.
The Terms
- Average Part D Premium
This is a number published each year where the Centers for Medicare and Medicaid Services (CMS) just puts out the average premium cost looking at ALL Part D plans across the country. It is not a weighted average.This number went up 76% from 2023 to 2024 so… clearly the 6% Rule is NOT applying to this.
- Base Beneficiary Premium
This is the number used to calculate the Part D Penalty for those who did not sign up for Part D when they “should” have.This number is an accumulation of all of the Part D bids that insurance companies submit for the upcoming year. This is a starting point for companies to set their base Part D plan, but it is not the same as what you would pay to have Part D coverage as evidenced by plans that cost as low as $0.50 per month and plans that cost over $100 per month.
This IS the number that the 6% rule applies to and, for context, this number did increase by exactly 6% from 2023 to 2024. I wouldn’t count on this being less than 6% for the next several years.
- YOUR Monthly Premium
This is the number that you pay each and every month to have Part D coverage.
The 6% rule does not apply to this number and, I’m not a fortune teller, but from everything I’m hearing about what’s coming in 2025… premium increases across many plans will be MUCH higher than 6%.But… that’s why we and other agents exist!
We’re here to help once changes are announced and new plans are released in October.
Book Recommendation
I went years… I’m talking YEARS… without crying.
My wife and I were married for 12 years before she heard me cry for the first time.
I had a nightmare where I was crying in the dream, and woke up crying so… I don’t think that should count… but whatever.
For whatever reason, the last two years I’ve turned into a crying machine.
Caitlin calls me a baby.
I think it’s because I’m maturing and super tough, and even tough guys can cry. ESPECIALLY tough guys cry all the time.
Moving on… reading this book was one of the recent cry sessions.
And they were happy tears.
This is an unbelievable story about a German WWII pilot and an American WWII pilot.
I don’t want to give it away, but during arguably the worst time in human history, the level of humanity shown in this book was touching. So much so that I was crying like a baby driving home from a golf outing.
Please give it a read.
Words of Wisdom
My words of wisdom last month were to take the time to observe and… well… I may be taking that a little too far this summer.
If you haven’t seen the announcement on YouTube yet, my family and I are going on an epic road trip to visit all of the lower 48 states in one, 6-week long trip. It’ll be over the summer, which means it’ll be nice and hot for our trip, but we are all incredibly excited.
And equally terrified.
Hopefully, we all like each other by the end of it.
We are going to have the unique ability to document this trip with cameras, microphones, and all sorts of great opportunities to capture these memories.
The one rule I’ve set for myself is to be in the moment.
I don’t want to get too caught up capturing the pictures and videos and forget to be present for the moments themselves.
Our trip will consist of two different “legs.”
The first will be with my in-laws (my wife’s parents).
We’ll be going to visit family in Oregon, so we are going to knock out 7 of the western states in one trip. We’ll drop the in-laws off at home and then my little family will continue on to the other 41 states.
I’m hoping for good weather, a car that won’t let us down, and good health… if those three things can happen, I will consider this trip a huge success.
Medicare in each state
There are several Medicare rules that get tweaked a little (or a lot) by different states.
What I’m going to do is record a video in each state we visit that will outline the details for your state.
Things like:
- Average supplement costs compared to the national average.
- Average advantage plan max out of pocket costs compared to the national average.
- Supplement underwriting rules and how easy it is or isn’t to switch.
- Advantage plan rules and regulations.
- Anything else specific to the state.
My hope is that this will bring a lot of value to you as you watch the video specific to your state.
Or, if you’re planning to move to another state, you’ll be more familiar with how Medicare works there before you move.
This will all be on the main channel we met each other through.
I will still be working and helping people with Medicare along this trip, so this doesn’t mean you shouldn’t reach out… it just means I may not be able to respond while we are trekking through the middle of nowhere USA.
Family Channel
My wife and I created another YouTube channel called Sodas on the Road.
My nickname in high school was “Soda” because my last name isn’t the easiest to say nor the most beautiful (Sorry Caitlin!).
This other YouTube channel is where we will be documenting more of the non-Medicare sights and sounds of the trip.
The food, the road games, the fitness studios my wife will visit, and the meltdowns 🙂
You get to read a bit of my personality and life outside Medicare in this newsletter.
If that hasn’t scared you away yet, you can get an even more complete look at my shenanigans by subscribing to this new channel, which you can do by clicking this link:
Sodas on the Road
I would also love to get your tips on the Must-See places in your state.
We have limited time in each state and I want to make the most of the time we have there when we visit.
What are some interesting sights?
What food do we HAVE to try that represents your state?
What activities should we steer clear of and what areas we should avoid?
Any insights would be much appreciated as we plan this all out.
Where’s the Wisdom this month?
Time is our real currency.
I’m excited and scared and nervous and thrilled… all at the same time… to spend so much time with my family, making memories we will never forget. Not everyone gets this chance. Just like not everyone gets the chance to be where you are in your life at this moment.
Whatever your circumstances… good, bad, happy, sad… take the time you have today to make a meaningful memory.
All we are as humans is a collection of memories… those we’ve already made… and those we’ve yet to make.
I appreciate you making it this far and look forward to hearing from each of you about must-see places in your state.
Until next month,
Erik
