Legislative changes can be overwhelming, especially for seniors dealing with finances, healthcare, or long-term care decisions. Enter the new One Big Beautiful Bill Act (OBBBA) – a sweeping law that will impact seniors and their families in profound ways. Though some provisions may bring financial relief, others might introduce new challenges. Let’s delve into what you need to know.

Medicare Impacts

• OBBBA increases the federal deficit, triggering automatic Medicare spending reductions starting in 2026, with an estimated $500 billion in cuts through 2034.
• Some immigrants will lose eligibility unless they're U.S. citizens, green card holders, or certain Cuban-Haitian entrants.
• Streamlined enrollment for Medicare Savings Programs and related Medicaid benefits is paused until at least September 2034, leading to more paperwork and possibly fewer seniors qualifying for aid.

New $6,000 Senior Deduction

• Applicable from 2025-2028 for those age 65+ ($12,000 for qualifying couples).
• Claimable with either the standard or itemized deductions and is in addition to the regular age-65+ add-on.
• Full benefit phases out beyond $75,000 (single) and $150,000 (joint) modified adjusted gross income; eliminated at $175,000/$250,000.
• While it doesn't make Social Security tax-free, it may reduce taxable income and the portion of benefits taxed.

Medicaid Eligibility Changes

• From 2027, ACA Medicaid Expansion beneficiaries must renew every six months, with shorter response times for document verification.
• Annual renewal still applies for seniors in long-term care, but missing paperwork deadlines could mean lost coverage.
• Medicaid provider payments will be capped at Medicare rates in expansion states and 110% in non-expansion states – potentially impacting Medicare Advantage reimbursements.

Nursing Home Staffing Rule Paused

• The federal staffing requirement is on hold until 2034.
• While some states have their own staffing laws, this delay may slow improvements in staffing levels.
• Encourage direct inquiry with facilities about current staffing practices and care standards.

While OBBBA introduces both benefits and challenges, understanding these changes now can prevent surprises later. Staying informed is vital for protecting your health, finances, and long-term care planning. We encourage you to connect with a professional, review your plans, and ask questions about how these changes may affect you personally. Be proactive, not reactive, to safeguard your future.  Want to know more?  Call us at 256-417-4870 or 813-522-4455.

Mike

About the Author: Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC, and an avid sporting clay competitor. Our firm provides personalized planning and investment services to individuals approaching and in retirement. Disclaimer: This content is intended solely for informational purposes. CochranMickels Retirement Specialists, LLC and its representatives are only authorized to offer advisory services where properly licensed or exempt from licensure. Investing carries risks, including potential loss of principal capital. Our firm does not endorse external links, nor is it responsible for third-party content