Eight days in and things are already changing

January 8, 2025 • Issue #267

4. Fewer surprise hospital bills

Starting Jan. 1, hospitals have to disclose more data about their prices under a transparency policy the Centers for Medicare & Medicaid Services has been rolling out in phases since 2021. Among other things, hospitals are now supposed to provide something called an "estimated allowed amount," which the CMS defines as "the average dollar amount that the hospital has historically received from a third-party payer for an item or service."

Although current hospital compliance rates are scary low, these changes are aimed at helping patients make more informed decisions about their care.

5. Higher wages

The federal minimum wage may be stuck at $7.25, but 21 states (plus a few dozen counties and cities) are giving millions of workers a raise in 2025 thanks to ballot measures, bills and automatic inflation adjustments. States raising their hourly minimum wage this year include South Dakota (to $11.50), Missouri ($13.75), Maine ($14.65) and Washington ($16.66). 

6. Quick subscription cancellations

This hasn't happened yet, but we're gearing up for it: The Federal Trade Commission's "click-to-cancel" rule becomes effective on Jan. 14, and entities have to comply by May 14. 

The policy prevents sellers — *cough, cough* gyms and streaming services *cough, cough* — from misrepresenting or hiding facts about their goods or services from me before I sign up. It also makes it so sellers have to provide a way for people to cancel that's as easy as it is to sign up. No more jumping through hoops just to get an annoying monthly charge off my plate.

7. Cheaper prescription drugs

Starting Jan. 1, out-of-pocket costs for prescription drugs are capped at $2,000 for people who have coverage through Part D of Medicare, which is a federal insurance program for people over 65 and younger Americans with disabilities. A statement from the White House claims that this will save 19 million people an average of $400 each.

The cherry on top is that 64 Medicare Part B drugs are getting cheaper through March. This is due to an Inflation Reduction Act provision that dinged drug companies for raising the prices of these meds faster than inflation. Those manufacturers had to pay Medicare a rebate, and the government is using those dollars to subsidize the price of the eligible drugs.

8. More 1099-Ks

Way back in 2021, Congress tasked the IRS with enforcing a law around Form 1099-K, which is a tax document that includes data on payments from apps or online marketplaces. In the name of improving compliance, it drastically reduced the threshold for who got a 1099-K. Previously, a marketplace or payment app had to issue a 1099-K to a seller if they made at least 200 transactions totaling over $20,000; under the American Rescue Act, that was slashed to any seller who makes over $600.

After years of delays and tweaks, the agency is on the precipice of fully rolling this policy out. Right before Thanksgiving, the IRS announced that the 2025 threshold for receiving a Form 1099-K is $2,500. This means that depending on what you sell online this year — and how you sell it — you may get a tax form come next spring.

(but please don't tell me you scrolled past all of my hard work)

This month kicks off a ton of changes that could affect my wallet. Not all of them are immediate, not all of them apply to everybody, and not all of them are listed here, but whew. It's going to be an exciting year.

via Giphy

check out this wild celebrity purchase

via Instagram

Peter Parker and MJ Tom Holland and Zendaya are betrothed, if the rumor mill is to be believed, and there's quite the rock involved. When Zendaya showed up to the Golden Globes on Sunday with her new bling, Deuxmoi posted a blind item claiming the engagement ring was a $200,000 custom creation by London jeweler Jessica McCormack. Euphoria ensued — how marvelous!

five things I'm loving online right now

send me cute pictures of your pets, please

via me

This is my dog, Zoey, dressed as Buddy the Elf. She's looking forward to a financially pawductive 2025.

See you next week.

P.S. What money goals do you have for this year? What would you like to see me cover? Have you ever seen a cool bird? Send resolutions to julia@money.com.

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