Are You Ready?

Preparing for the Future

Did you know that the federal budget bill, which the United States Congress passed on July 3, 2025, includes significant changes that may impact seniors, individuals with disabilities, and their family caregivers in several key areas? Some of them will not take effect for years, and others will take effect immediately.

In this article, I want to share information I’ve gathered so that we can best prepare for some of the changes that are coming our way.

Here's a list of eight areas taken from various sources that may be of concern, from what I can tell:

• Medicaid: The new bill proposes a reduction in Medicaid, the joint federal and state program that helps cover medical costs for low-income people and those with limited resources. A combination of decreasing federal payments to states and implementing work requirements for many recipients may lead to a decline in the availability and quality of services for seniors who rely on them. In addition,
  Medicare Savings Programs, which help individuals with limited income and resources cover their Medicare costs, may be impacted by provisions that make accessing them more challenging, potentially leading to higher out-of-pocket expenses.

  • I don’t qualify for Medicaid. However, I plan to have enough money to live on without relying on the resources it provides.

• Nursing Home Care: A rule that would have established minimum staffing standards for nursing homes was rescinded, which can negatively impact the quality of care for residents in these facilities.

  • My husband, Dan, lived in a memory care facility for five months before he died. The cost was high; nonetheless, the facility didn’t meet my needs or what I wanted for him.

  • After visiting several assisted living facilities over the years, I’m opting to stay in my apartment for as long as possible and hire in-home care if necessary. I have money set aside just in case.

• SNAP (Food Assistance): The bill includes measures that may result in significant cuts to SNAP benefits, formerly known as food stamps. It will consist of requiring states to take on a larger share of the program's costs, which may necessitate reductions in benefits or eligibility. It also extends work requirements to older adults aged 55-64, which could result in a million older adults losing food assistance.

  • In 2025, the USDA Economic Research Service forecasts predict a 2.9% increase in overall food prices, with a narrower range of 2.0% to 3.9%. Food-at-home (grocery) prices are expected to rise by 2.2%, with a prediction interval of 0.8% to 3.7%

  • These cuts won't affect me, but I’m aware of the rising food costs at the grocery store and restaurants. I buy thoughtfully.

• Taxes: The bill introduces an increased standard deduction for seniors, raising it by $6,000. This benefit, which is short-term and set to expire in 2028, is estimated to primarily benefit upper-middle-class seniors, with fewer than half of them expected to benefit from the change.

  • I’m not counting on this possibility.

• Social Security: The Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) benefits is set at 2.5% for 2025, a smaller increase than in previous years. While it will provide some relief from rising costs, many retirees find it insufficient to cover the increasing cost of housing, healthcare, and food.

  • I’m not counting on this either.

• Healthcare Costs: The standard Medicare Part B premium will increase to $185.00 per month, a $10.30 increase from the previous year. The Part B deductible will also rise to $257, from $240 in 2024. These increases, along with potential reductions in Medicare Advantage benefits and higher deductibles, may lead to greater out-of-pocket healthcare expenses for seniors.

  • One of my goals is to minimize the need for healthcare as much as possible by practicing wellness and well-being.

  • However, I do have a doctor, funds, and insurance in place.

• Housing Stability: Older adults are particularly affected by rising housing costs, whether they rent or own their homes. Increases in property taxes, utilities, and rents are creating financial strain, and some seniors are facing difficult decisions about their living situations.

  • I’ve lived in an apartment for 13 years and plan to stay here the rest of my life. My daughter lives nearby, I have a monthly house cleaner, and I can walk to most services or have items delivered to me. Even if I needed in-home help in the future, it would be more cost-effective to stay here than to live in an assisted living facility.

• The Affordable Care Act aims to expand health insurance coverage, regulate the insurance market, and control healthcare costs. It has nearly halved insurance premium payments for millions and doubled enrollment, but these benefits will expire later this year.
  Without Congress acting to extend them, they will disappear, causing net premium payments to increase by an average of 79% and more than doubling in some states.

  • I have a backup fund to cover this possibility.

If we are aware of the possible changes and their effect on us, we can prepare ahead of time and be better equipped to manage them as we age well.

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