AARP Hearing Center
Key takeaways
- Track Medicare drug negotiations as many costly medications may remain outside new price controls.
- Leverage updated IRS rules to gift up to $19,000 tax-free per recipient each year.
- Explore diabetes advances like GLP-1 drugs and wearables to better manage or reverse the disease.
Summary
Medicare drug price negotiations are in the spotlight as 25 of the costliest medications, used by over 11 million Medicare beneficiaries, have marked up prices averaging 67% since their debut. Yet many of these high-cost drugs may not be included in the government’s next round of price negotiations — potentially leaving older Americans to shoulder rising medication expenses. While diabetes is a growing concern among seniors, with 3 out of 4 Americans aged 65 and older affected, advancements like GLP-1 drugs, wearable glucose monitors and comprehensive prevention programs are making diabetes management and even reversal more attainable.
In other key financial news, the IRS has updated its rules for tax-free gifts, maintaining the annual limit to $19,000 per recipient. This change offers families more flexibility to support loved ones without immediate tax consequences, even as generous grandparents give an average of over $3,000 annually. For larger gifts, the lifetime exemption now stands at $15 million for individuals and $30 million for married couples, making strategic wealth transfers easier than ever.
The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
Full Transcript:
[00:00:04] 25 of the costliest medications used by more than 11 million Medicare beneficiaries have an average 67% markup since hitting the market, according to a
[00:00:14] new AARP Public Policy Institute report. But many of those drugs might not be selected for price negotiations,
[00:00:22] which could cause continued strain for older Americans. The Centers for Medicare and Medicaid Services will release the next list of
[00:00:30] drugs selected for negotiation by the end of this month. 3 out of 4
[00:00:36] Americans 65 and older have diabetes or prediabetes, according to the CDC.
[00:00:41] But tools like GLP-1 Drugs, wearable glucose monitors and year
[00:00:47]long prevention programs could help in the fight against the disease. Experts say with early testing, better treatment and access to new
[00:00:56] technology, diabetes is increasingly manageable, and in some cases reversible.
[00:01:04] An IRS tax rule that takes effect this filing season allows more flexibility to lend a hand to loved ones.
[00:01:12] Yearly cash gifts under $19,000 total per recipient are now tax-free.
[00:01:18] Anything over that will tap into the lifetime tax exemption. Under the One Big Beautiful Bill,
[00:01:25] that lifetime maximum is now $15 million for single filers and 30 million for married couples.
[00:01:32] A Senior List report shows 96% of grandparents gift their grandkids more than $3,000 a year on average.
