October 2024 – AEP and the Power of No

by Erik Soderborg |
October 17, 2024

It is October.
The scariest month of the year with ghouls, goblins, ghosts, and 2025 cost updates.
The good news is… we’re here to iron those out for you.

Well… the cost updates… I can’t help much with the ghosts.

This edition is shorter than last month… but it’s still got some meat to it.

Here is the agenda:

  1. 2025 Medicare Updates
  2. 2025 Social Security COLA Updates
  3. The Craziest Book Recommendation Yet!
  4. Words of Wisdom – The Power of “No.”

Medicare Updates

Medicare Part D

2025 Medicare Part D plans are now live.

You can shop the prescription drug plans available in your zip code using Medicare.gov’s plan finder tool.

I just released a video on the channel with a step-by-step tutorial on how to find the lowest-cost plan for you.
You can go from start to finish – comparing plans all the way through signing up for your 2025 plan.
Medicare.gov Drug Plan Finder Tutorial

A couple things to note:

  1. If your current, 2024 drug plan will still be the lowest cost plan for you in 2025… you do not need to do anything.
    It will automatically renew. You don’t need to re-sign up online.
  2. If your current, 2024 drug plan is NOT the lowest cost plan for 2025, when you sign up for the new plan through Medicare.gov, that will automatically cancel your old plan.Your existing plan will still remain active through December 31st, 2024.
    Your new plan will begin January 1st, 2025.

Please do not procrastinate your 2025 coverage options.
December 7th is the deadline.

I have friends who are ALWAYS late.
If we plan an activity where they are invited, and the activity starts at… say… 6:00 PM, the entire friend group will tell our late friends that we are getting started at 5:00, just so they will show up on time.

If you are this person, and you read the deadline as December 7th… pretend I really said November 7th.

For everyone else who doesn’t have a problem being late… December 7th is the deadline 🙂

Medicare Supplement + Drug Plan Trends

I don’t want to be “that guy,” but for most people, supplement plans and drug plans are seeing significant increases.

2025 will be a year of market corrections due to more regulations, increased utilization of the healthcare system in general, inflation and rising healthcare costs, and hospital contracts with insurance companies.

The average supplement Plan G and Plan N increases nationally have been around 9.9% (we’ll call that 10%).
We’ve seen some as high as 65%, so keep an eye on your supplement plan costs if this applies.

Similar story on the Part D drug plan side of things.

In general, premium costs are going up significantly for many.
Not only premiums, but to offset some changes to Part D rules, many plans have adjusted their formularies and tiers.

People are seeing their medications fall off their current plan’s formulary, prompting a need to change to a higher-cost drug plan that has their medication on formulary.

Please use that Medicare.gov Drug Plan Finder Tutorial to shop your drug plans.

For those of you who may be on the $0.50 or $0.00 drug plan, this still remains a good option for people with no medications or a handful of low-cost generic drugs. I would still use the plan finder tutorial to double check.

Medicare Advantage Trends

A couple interesting points around the Advantage plan market.

  • Plan Terminations
    7% of all enrollees on Medicare Advantage plans in 2024 are seeing their plans terminated for 2025.
    If you are one of these people, you actually have more options available to you than anyone who just saw changes to their Advantage plan.
    This was covered, in part, last month and here is a video on what you can do: What to do if your Advantage plan is going away93% of all enrollees on Medicare Advantage plans have plans that will be renewed.
    If this is you… review your Annual Notice of Change (ANOC), and work with your broker to ensure the plan you have for 2024 is still a solid option for you in 2025.

    If you don’t see any significant, negative changes, your current plan will automatically renew.
    You don’t need to notify anyone or do anything.

  • Advantage Premiums Going Down
    Average Medicare Advantage plan premiums are going down.
    This is interesting because, with even more financial pressure on Advantage plans, you’d think premium increases would be more wide-spread.Surprisingly, they are not.
    The average Advantage premium went from $18.07 down to $17.47, with the vast majority of Advantage plans maintaining a $0 premium plan.
  • Drug Deductibles Going Up
    The big shift is in Drug Deductibles.
    The enrollment weighted average drug deductibles for Advantage plans is going from $176 in 2024 up to $309 in 2025 (up 76%).In 2024, 60% of everyone on an individual Advantage plan has a $0 Drug Deductible.
    If everyone were to stay with their current plan for 2025, only 31% of the same group would have a $0 Drug Deductible.
  • Max Out of Pockets (MOOPs) Going Up
    This one is surprising to me as well.
    The national average Max Out of Pocket in 2024 is $4,644.
    In most of my videos, I round that to $5,000.For 2025, the average is going up to $4,973.
    That is an increase, but not nearly as high as I would have guessed.
    And… it keeps the videos I did in 2024 still relevant because the average is even closer to $5,000 🙂

For those who are not on Medicare yet, thank you for enduring this newsletter for the next few months.
December’s will be less about Medicare and more about other fun retirement things.

Moving on…

Social Security Cost Of Living Adjustment Announced

The Social Security Administration announced the 2025 Cost Of Living Adjustment (COLA) this past week for those who are currently taking Social Security benefits.

This COLA also applies to those of you who have NOT taken Social Security benefits yet, so if you are waiting… your future benefits also went up a bit.

Very few income sources have a cost of living adjustment built in, so this is a wonderful benefit of Social Security.

However, if you are thinking that it is supposed to keep up with inflation… I hate to be the bearer of bad news… but it won’t.

The COLA for 2025 is a 2.5% increase.

2025 Medicare Part B costs haven’t been released yet, but it’s safe to assume they will be higher than 2.5%.
All the “experts” put it at around a 6% increase for Part B. Tack on the double digit increases for Supplement and drug plans and… 2.5% doesn’t cover, but again, the SS COLA isn’t meant to be your sole income source.

Here is a video that goes into this increase, how they come up with it, and other interesting tid-bits.
2025 Social Security COLA Announced

Book Recommendation

The 7 Prosperity Projects, Zaccary Call

This is the most unique book recommendation we’ve ever had because I kind of feel like I had an incy wincy part in the creation of this book

Many of you know my friend Zacc Call.
He’s been on the channel quite a bit.
Super smart. Super talented at explaining things. All the comments talk about how he is way more handsome than me… (I’m not jealous…).

I had an idea for a video around what I should do with my next dollar and how I can get ahead financially.
Zacc is a great person to address this, and we recorded the episode.
After the episode, he thought, “This would be a super useful book.”

I then went on the 48-state road trip with my family, and when I got back, Zacc had a book done!

He’s put so much time and effort into it.
It’s called The 7 Prosperity Projects and he’s now a published author on Amazon!

How crazy is that?!

So, I don’t know how I could leave that out of the book recommendation list.
I’ve read it.
I am using it in my own life.
It’s only 160 pages with several of those being a table of contents and summaries, so it’s a quick read, but goodness… it’s useful.

And, he and I re-recorded the episode once the book was in possession because he added a few things to further develop the whole idea.

We hope you find it useful!

Get the book here

Watch the full episode here or click the picture:
7 Money Projects Episode

Words of Wisdom

I had a sad moment of realization hit me this past week.

My son is nine years old, and he LOVES basketball.

A few days ago, he wanted to go to the local recreation center and shoot hoops with me.
As he left to school in the morning, we planned to go after he got home, but when he got back from school, one of his buddies had followed him home and wanted to play.

My son looked at me, knowing our plan… looked at his friend, not wanting to miss the opportunity to play… and we were in a bit of a standoff.

I kept quiet, because, as his father, I was interested to see what he would choose.
Time with dad…or time with his friend?

He chose his friend.

He nervously said, “Dad, is it okay if I play with Easton today?”

I said, “Of course!” and then went off to my room to cry a little.

Just kidding.
I never cry, because I don’t have feelings.

Okay… that was a lie. I cry all the time.
And over the silliest things!

But my crying abilities are not the main topic of this month’s message.

The Power of No

I noticed this with my parents and, as I’ve been a parent now for over a decade, it’s happening with my parenting as well.

So much of our day is spent saying, “No.”

“No, you can’t cut your troll doll’s hair, it won’t grow back.”
“No, our dog doesn’t want you painting her nails.”
“No, your brother didn’t mean it when he called you an idiot.”
“No, you can’t wear your swimsuit to school.”
“No, if you tear your $20 bill in half, you don’t have $40.”

I hate to admit it, but when one of my kids approaches me with a question, my default response is “No” unless they can persuade me otherwise.

I think the list above helps justify this logic. Their requests are often ideas that I know are going to break something, hurt feelings, and probably turn into me needing to spend money to replace broken things.

Now… let me flip things around on you real quick.

The Circle of Life
Up until this last week, when Easton stole my son’s loyalty away with the promise of a bike ride around the neighborhood… it didn’t matter what I was doing, if I asked my son if he wanted to come with me, it was ALWAYS… “Yes!”

“I’m going to get a haircut, want to come?”
“Yes dad!” Followed by him running to get his shoes on.

“I’m running to the office to get a paper I forgot, want to come?”
“Yes dad!”

He’s been my little shadow for years, and his default answer has always been “Yes.”

Until last week.

And I tried to point out that there was a visible conflict within him as he made the decision to, in a nice way, tell me no.
It was hard for him.
He was uncomfortable.

Unfortunately, I think it’ll only get easier for him.

I look at my son and his sisters and I can feel the figurative leashes tethering them to me getting longer and weaker, and it’s scary.
The older they get, the less I feel able to protect them, and they feel less dependent on us parents.

It’s all part of life, I guess.
I want them to be confident and independent.

I also really like having them as my little buddies.

My Saddest Moments in Marriage
I adore my wife, and I have no doubt that she loves me – no matter how many reasons I give her to feel otherwise.

I’m not saying the following is right or wrong, it’s just how I was raised.
I try to prioritize my wife’s needs and wants above anyone else’s.

Above my parents. Above my kids. Above my friends. And, in most cases, above myself.

Am I perfect at this?
No. Not even close.
But, over the course of our 15 years together, I think I’ve done a decent job.

My wife is THE hardest person IN THE WORLD for me to tell “no.”

This means I get dragged to extended family reunions that are awkward.
We have a masquerade wedding in a couple weeks.
I’ve never been to a masquerade.
It looks weird.
I don’t dance.
It sounds like an absolute nightmare.

But… she asked.

As a husband, the single thing that has made me the most sad in specific times of our marriage is the realization that, while I have an incredibly difficult time saying no to her, I am the easiest person for her to tell “no.”

If you’ve made it to this point and you’re thinking, “Uh oh… Erik is sharing way too many marriage problems…”

Don’t worry. That’s not where this is going.

If my wife is faced with a decision of picking a request from her kids, her sisters, her parents, her friends, her coworkers… or Erik… that list order is basically the priority order of who gets the Yes answer ahead of the others, with me in last (of that group).

And this is part of life!

She doesn’t consciously go through this list order (as far as I’m aware).
She doesn’t use this in a way to compromise our relationship or hurt my feelings.
It’s just the reality of being more familiar and comfortable with someone.
At least, that’s what I’m telling myself.

This realization that husband/dad is the easiest person to tell no to gets me thinking…

Who in my life is easiest for me to respond with, “no?”

My embarrassing answer
My mom.

My mom was the easiest person for me to tell no, and now that she’s gone, I wish I had said yes more often.
If I really dig deep and try to understand why it was her, I think it was because I had no doubt that she loved me unconditionally.

As a teenager, there were moments where I knew telling her no would hurt her. But, I knew she would still love me.
I hate to think of how many times – not just as a teenager – I told her no without realizing how desperately she needed a yes.

My son has caused an internal reflection and reordering of the people and priorities that get “yes” answers more often than “no” answers.

Who is easiest for you to tell “no?”

I want you to think through this for yourself.

Who usually gets dropped when competing priorities come up at the same time?

Is it a spouse?
Is it a child?
Maybe a grandchild?

Now that’s just blasphemy!
We all know the grandkids will ALWAYS be #1.

Where we spend our time and with whom we spend our time can be a reflection of how we feel about them.
If the person you love more than anything in this world is the easiest person to tell “no,” then maybe this next week, put that person up a spot or two.

Just because we know we can get away with turning them down, because we’ve known them for so long, or we know that they love us no matter what… try and reciprocate that love back. Just this week! We don’t have to do something crazy life-changing… but just for a short time.

Make the conscious decision to understand the incredible power of “No,” and counter it with the even stronger power of “Yes.”

How about another secret key word to prove you made it here?
Another thing I have a tough time telling “no” is my golden retriever – Ruby.
Mention Ruby, and we’ll both know you made it to this point 🙂

Happy Annual Enrollment Period (AEP)
We are officially in the heat of the busy season for Medicare.

Thank you for taking the time to read this newsletter.
I sincerely hope these messages are helpful.

I appreciate you and we’ll chat again in November!

Erik