A “Frank” Conversation

As the new year begins and a new administration takes office, it can be challenging to predict and follow policy changes. FEDlogic acts as an independent resource, offering education, guidance, and advocacy for all federal and state benefit programs. Our team of policymakers, experts, and adjudicators have worked in these government agencies and utilize their decades of knowledge and experience to decipher and decode policies. Social Security is a crucial aspect of the benefits that our population relies on, both now and in the future. As we enter 2025, Social Security and Medicare have announced several adjustments to take notice of. Herein, you will see some of those upcoming changes. As always, please feel free to reach out if you have any questions or if we can help in any way.

— Frank Cardenas, Chief Executive Officer & Co-Founder

A Review of Changes to Social Security Benefits for 2025

The Social Security Administration (SSA) has announced several key policy changes effective in 2025, impacting beneficiaries nationwide. These updates include adjustments to benefit amounts, taxable earnings limits, and potential legislative changes affecting benefit calculations.

Cost-of-Living Adjustment (COLA)

Starting January 2025, Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5%. This adjustment, based on the rise in the Consumer Price Index, aims to help beneficiaries maintain purchasing power amid inflation. On average, this translates to an approximate $50 monthly increase for retirees.

Adjustments to Taxable Earnings

The maximum earnings subject to Social Security payroll taxes will rise from $168,600 to $176,100 in 2025. This change means higher-income earners will contribute more to the Social Security system, enhancing its financial sustainability.

Supplemental Security Income (SSI) Updates

The federal SSI payment standard will increase, with the maximum monthly benefit for an individual rising to $967 and for a couple to $1,450. This adjustment reflects the COLA and aims to assist low-income individuals and couples in meeting basic needs.

Windfall Elimination Provision (WEP) Developments

On January 5th 2025, the President signed the Social Security Fairness Act of 2023, which repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Both provisions reduced SSA benefits for someone who received a pension based on work that was not covered by Social Security. The law will be applied for benefits payable for months after December 2023. The WEP and GPO provisions will still apply for benefits payable for months prior to January 2024.

Implications for Beneficiaries

These policy changes reflect the SSA's efforts to adjust benefits in response to economic conditions and legislative actions. Beneficiaries are encouraged to review these updates to understand their potential impact. For personalized information, individuals can access their benefits statements through the SSA's online portal or contact their local SSA office.

Staying informed about these changes is crucial for effective financial planning and ensuring that beneficiaries receive the full benefits to which they are entitled. FEDlogic is here to provide eligibility education and enrollment assistance for all Federal and State Health benefits.

— Jennelle Bratcher, Executive Vice President of Services
& Jermaine Boyd, Vice President of Services

FEDlogic: A Steadfast Resource in the Face of Uncertainty

As the results of the 2024 election unfold, it’s natural for employees and families to feel a sense of uncertainty, particularly regarding changes to health care. Speculation about what changes in  Washington after the most recent election could mean for health care policy has raised questions, but it’s important to remember that sweeping changes don’t happen overnight. At FEDlogic, we’re here to provide clarity and support during times like these.

Understanding the Timeline for Change While new leadership may bring a desire for disruption, there are structural and procedural barriers that limit how quickly changes can occur. For instance, it will take until at least April for key agency appointments to be confirmed by the Senate. After that, Congress will face a narrow legislative window before the focus shifts to the 2026 midterm elections. This means that significant legislative overhauls are unlikely in the short term, particularly given the slim margins in both houses of Congress.

Instead, we can expect any immediate changes to come through executive orders or administrative directives. While these actions can impact policies, they often face legal challenges and require time to implement. Historically, such changes have focused on “low-hanging fruit”—policies with populist appeal that can be enacted quickly. Even so, the effects of these policies are typically limited and gradual.

What This Means for You Speculation about potential changes can create fear, but it’s crucial to focus on what we know:

• Core aspects of major programs like Medicare and Medicaid are deeply ingrained and have broad bipartisan support.

• Protections for pre-existing conditions and young adults under 26 remain highly popular and are unlikely to disappear.

• Commissions or task forces may be formed to study healthcare issues, but these often result in long-term recommendations rather than immediate action.

How FEDlogic Can Help FEDlogic’s mission is to assist our clients along with their employees and families in navigating life’s challenges—including during periods of political and economic uncertainty. Our team stays up to date on policy changes and their potential impacts, ensuring we’re prepared to guide you through any transitions. Whether it’s helping employees access benefits, answering questions about healthcare options, or providing peace of mind during uncertain times, we’re here to help.

Change is inevitable, but it doesn’t have to be overwhelming. By focusing on facts rather than fear, and by relying on trusted resources like FEDlogic, employees and families can navigate the future with confidence. Together, we’ll face whatever comes next.

— Kate Kellner, Senior Director of Operations

Learn about FEDlogic and Receive CE Credit on January 16th, 2025

Join us on Thursday, January 16th, 2025 at 2:00pm Central for a special live webinar in partnership with HR Pros magazine. This one-hour session is designed for HR professionals and qualifies for HR continuing education (CE) credit.

In this webinar, we’ll explore how FEDlogic's services can enhance your employee benefits offerings while saving your organization money. You’ll gain valuable insights into navigating federal and state benefits, supporting employee well-being, and optimizing your benefits strategy.

Don’t miss this opportunity to earn CE credit while learning how to improve your benefits package with FEDlogic. Register today by scanning the QR code or clicking the image below.

How FEDlogic Helps with COBRA 

Choosing whether to elect COBRA coverage can be complex for employees. Key factors influencing this decision include cost, duration of coverage, and available alternatives. However, many employees lack the time, resources, or knowledge to evaluate these factors fully. This is where FEDlogic steps in, offering assistance to employees and providing them with the information they need to make an informed decision.

Guidance and Education

FEDlogic provides personalized guidance to help employees understand the pros and cons of electing COBRA versus other health insurance options. By analyzing their current situation, including their health care needs, budget, and family status, FEDlogic helps employees weigh their options. For instance, if an employee is eligible for subsidies through the ACA marketplace, FEDlogic can help them understand how those subsidies may make purchasing individual coverage more affordable than COBRA.

The Bottom Line: Saving Money and Providing Support

The average COBRA premiums for employees are between $400 and $700 monthly for individuals and $2,000 for family coverage. Employers also have the added COBRA administration costs, which are increasing each year. FEDlogic’s services offer significant financial and operational benefits. By working with FEDlogic, employers can mitigate costs while providing employees and their with the support they need to make informed health insurance decisions during times of transition.

— Max Osbun, Vice President of Business Development

Looking Back at 2024: A Year of Growth and Impact

December is a time for celebration, reflection, and planning ahead. For FEDlogic, 2024 was a year of extraordinary milestones and growth. On a personal note, my wife and I welcomed our third child—a momentous occasion for our family. Professionally, FEDlogic achieved even more remarkable growth, reinforcing our mission to provide unbiased education and advocacy for federal and state benefits.

As FEDlogic’s “resident data nerd,” I can’t resist sharing some key stats that highlight the impact we’ve made this year:

• Nationwide Reach: We now have clients in all 50 states, thanks to welcoming our first client in Hawaii earlier this year.

• 5 Million Lives Covered: FEDlogic now supports over 5 million individuals across the U.S. and Puerto Rico. 

• Medicare Open Enrollment Growth: Consultations during the eight-week enrollment period increased by 148% compared to 2023, with transitions up by 129%.

• Client Savings: During the Medicare Open Enrollment period alone, our clients saved more than $16 million on healthcare, contributing to an estimated $60 million in savings for the year as of December 1st.

• Retention: FEDlogic is proud to boast an average renewal rate of 97% since inception. As we close 2024, we have seen a 99% renewal rate year to date! 

Our growth has been intentional and driven by our commitment to reinvest in our mission. This year, we:

• Quadrupled the size of our Client Services team to enhance client support.

• Doubled the number of extremely qualified experts to meet growing demand.

• Launched an interactive website with co-branded logins for every single client, improving accessibility and service.

• Finalized development on a cutting-edge reporting platform, seven months in the making, to provide clients with actionable insights. We are thrilled to launch the new reporting platform in Q1. 

Looking ahead to 2025, we anticipate significant developments in federal and state benefits. Changes to Medicare Part D and definitions of credible coverage are creating confusion among employees and HR professionals. We’re also fielding questions about potential policy changes under President Trump’s second term.

This is why FEDlogic’s expertise matters now more than ever. As the only vendor covering all federal and state benefits, and with a team of former agency experts, we provide clarity and confidence to our clients. While programs like Social Security and Medicare are here to stay—though subject to potential amendments—programs like Healthcare.gov and Medicaid may see more significant changes in the coming years. It is important to note our teams find it highly unlikely the programs are eliminated but do expect expansion and retraction depending on the state over the next four years. 

As we move into 2025, we remain steadfast in our mission to navigate these complexities and deliver meaningful results. Thank you for being part of our mission, and here’s to another impactful year ahead!

— A.J. Ceberio, Chief Operating Officer

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_{DISCLAIMER: The information, education, and advice provided by FEDlogic, LLC (“FEDlogic”) shall be intended for educational purposes only. Each individual’s circumstances are inherently different from those of another, and therefore, the advice given to an individual may result in unintended consequences to another. The information provided by FEDlogic shall not constitute legal, financial, or accounting advice and further shall not be interpreted as advice from the Federal government. While FEDlogic makes every effort to ensure that the information provided by its consultants is up-to-date, useful, and accurate, FEDlogic makes no guarantees and may not be held liable nor responsible for any inaccuracy or detrimental consequence resulting from the information provided. Notwithstanding the foregoing, any errors or omissions discovered by FEDlogic, its agents, or its customers will be addressed and resolved as soon as possible.}