April 11 is a big and important day for millions of beneficiaries receiving Social Security, retirement, disability, SSDI survivors, and Medicare benefits. I have all the details for you on this topic. And so I can keep you updated each and every day with all of this information that continues to change very rapidly.
I’m doing all the research so that you don’t need to and I break it all down into these short topics so that you can get the latest details hot off the wire every single day as this information is being released. All right. So April 11 is going to be a very big and important day for all of those millions of beneficiaries that I mentioned at the beginning of the topic.
And I want to describe why this date is going to be so important, what we need to watch for and how this may be impacting your monthly benefits in a good way. Yes, you heard that correctly. In a good way. It is not all that often these days that we hear something come out or being announced that may actually impact your benefits in a good way. So I do want to describe why April 11 is such an important day and what we need to watch for.
All right, so April 11 is the final day that Medicare needs to release their final analysis on that Alzheimer’s prescription called Adduhelm. Now, this is the very expensive prescription that originally was costing $56,000 per patient per year. However, as of late last year, they did lower the price by about 50%, down to about $26,000 each and every year per patient, which let’s be honest with ourselves, that is still very, very expensive, right? $56,000 per year for one prescription item. That’s very expensive.
But either way, as you can probably anticipate, there’s a lot of controversy about this thing right now. Well, for the last few months here, Medicare has been going back and forth. If they’re going to cover it and if they do, at what level are they going to cover it and all of these other different aspects of this actual prescription? Well, as a result of that, back in November of 2021, we also knew at that time the Centers for Medicare and Medicaid Services came out and announced a massive 14.5% of raise to the Medicare Part B premium. Therefore, that means all of the beneficiaries who have Medicare Part B and all of your premiums are being drawn out of your monthly benefits.
Well, unfortunately, as of 2022, early in January, when you start getting your first benefit? Yes. They started taking an extra $21 and change out of your monthly benefit to adjust for that massive 14 and a half percent raise to the Medicare Part B premium. However, a lot of that, or about 50% of the actual premium raise came from this one prescription item. So they could start building up extra money for this thing because it costs so much, they had to start collecting money now.
Well, as you can probably anticipate, this has caused a lot of controversy going forward. And a lot of people out there, lawmakers, as well as a variety of other high profile people have been writing letters to the Centers for Medicare and Medicaid Services, as well as the Health and Human Services Secretary saying, you’ve got to do something about this. We can’t be having premiums adjusted this much higher. We need to lower those premiums and we need to do something about this. And that’s exactly what they’ve been working on here for the last several months.
So April 11 is going to be the key date that we need to watch closely. Now, you might be wondering, okay, sounds fun, but how does this actually relate to my monthly benefits? Here’s why and here’s how. So in the event that Medicare comes out and announces, okay, fine, we’ve looked at the prescription item and either we’re going to cover it very minimally or we are not going to cover it at all or we’re going to cover it fully. Either way, we don’t really know what the details are going to be quite yet.
However, based on their decision, that must be released by no later than the end of the day on April 11. According to what I’ve been finding about this, we need to watch that closely because here’s the deal. If they have limited availability of this prescription item, according to the Health and Human Services Secretary, he has announced that in the event Medicare comes out with some kind of coverage limitations or something like this on this prescription item, he may be given the authorization to reduce the Medicare Part B premium going forward. Yay, right. For all of us who have monthly benefits or Medicare Part B.
And we’re paying these massive monthly benefit premiums of, well, $170 plus change every single month. That’s a lot, especially last year it was $148.50. So that’s a big, big change. $21 and change is what it went up just in one year alone. So anyway, here’s what it’s going to come down to.
The Health and Human Services Secretary has already announced that he’s going to be waiting for this official announcement out of Medicare before he determines any official adjustments to the Medicare Part B premium. However, at this time, we already have a pretty good idea that there’s likely going to be a reduction to the Medicare Part B premium going forward. So what does that mean for you and your monthly benefits? Well, it means probably a couple of good things here. Number one, depends on how much they actually lower the Medicare Part B premium.
But that just means less premium that you pay every single month. And guess what? You get that money back in the form of a higher monthly benefit. You get what I’m saying. So your benefit may actually be increasing because simply they wouldn’t be taking as much in the Medicare Part B premium now.
So that’s one good thing. Next, there would be going forward through the rest of the year, the reduced Medicare Part B premium. Again, a higher benefit for you, how much is going to be again, I don’t really know that much. I’m not really sure what it’s going to be yet. They have not had that announcement again, but the Health and Human Services Secretary will be announcing that sometime on or around April 11.
Good day, right? Pretty good stuff there. However, one of my major questions here that I want to know, and again, this has not been announced yet, but I’m guessing we’ll get some kind of additional information about this once the Health and Human Services Secretary speaks on this. But one of the major questions that I have about this is what about all the months that we’ve already paid the Medicare Part B premium at the increased rate? Are we going to get a little rebate, a little check back?
What are you going to do about that, or is that money just gone and it’s never to be seen again? You kind of get what I’m saying. I’m not really sure what that’s going to equate to as far as how many dollars it may result in getting back, if that’s even an option. But that’s something that I certainly want to have answered here. Can all of us potentially anticipate maybe a little bit of a refund from Medicare, or are we just out of luck, as they would say?
Right. Well, let’s hope that we get a little bit of a refund at a minimum, at least to account for all the months that we paid the higher benefit or the higher premium amount. But if that’s not the case, then hopefully they can get something like this enacted as quickly as possible. So that sometime, hopefully starting in maybe late April, for those of you who have benefits that arrive later in the month or maybe like May, at the absolute latest that we can start getting our benefits adjusted, where we would get that higher monthly benefit as a result of less Medicare Part B premium being taken out, kind of makes sense. So anyway, it’s not like your benefits are technically going to go up if you’re receiving, say, 920 a month right now from whatever type of benefits, for example, it’s not necessarily that your benefit will be increased, but rather the ratio of your benefit would actually be changing.
Maybe you pay let me take that back. Let’s just say that you get 920 a month and out of that 920 they take 170 for your Medicare part B premium. Maybe that just gets decreased a little bit and then the amount that you get to take home is actually a little bit more if that kind of makes sense. That’s what I’m saying here. It doesn’t mean that your benefit would actually be increased, but rather like your take home pay after the premium reduction would maybe be a little bit more.
So again, kind of still waiting to get more clarification on this and how they’re actually going to determine to actually do all this for everybody. But it does seem a little bit promising here and the health and human services Secretary has indicated that he’s going to take this on and review this and determine a final analysis after Medicare releases their final analysis on this very expensive Alzheimer’s prescription. Either way, crossing our fingers here that this is going to be a big reduction in the Medicare part B premium. Well, let’s just say this much. It’s probably not going to be any more than $21.
I’m just saying that I think that’d be even a little bit generous here’s. Why? Because we already know that according to the reports and everything, it’s about $11 within the $21 increase this year in 2022 for the Medicare part B premium. About $11 of that $21 that they’re charging extra this year is because of that prescription. So maybe they removed the entire $11.
Again, some unanswered questions here. But either way, it looks like we could be getting some pretty cool news around April 11 on or about that date. So anyway, it’s pretty exciting. It’s maybe going to result in a few extra dollars for us, but at the same time, at least it’s something because Congress isn’t exactly doing a whole lot. They are working on a few things.
But again, I’ll keep you posted on this. I want to shake it all out for you, let you know what’s going on out there. There’s some pretty exciting things, but either way, I’ll continue watching everything very closely as I do get more information. So you don’t miss any topics going forward during this very busy time.