Published on Nov 08, 2024
How Much is Medicare going up in 2025 | Medicare Benefits in 2025 : Medicare will undergo significant changes in 2025, which may have a significant impact on the cost of your prescription medications.
The prescription drug "doughnut hole" will be closed and out-of-pocket drug expenses will be limited to $2,000 annually beginning in 2025.
1. Projected increase: 5.9%
2. Estimated monthly premium: $185 (up from $174.70 in 2024)
1. Average premium change: Decrease of $7.45
2. Estimated average monthly premium: $46.50 (down from $53.95 in 2024)
Important note: While the average is decreasing, some individual plans may see increases capped at $35 per month due to a new premium stabilization program.
• Out-of-pocket drug spending cap: $2,000 per year. This is a significant change introduced by the Inflation Reduction Act.
• Elimination of the "donut hole" in prescription drug coverage.
• Medicare.gov: This is the official website for Medicare and will have the latest details on costs and coverage.
• KFF (Kaiser Family Foundation): KFF provides in-depth analysis of health policy, including Medicare. You can find their reports and articles on their website.
The deductible will now be $590, up from $545 in 2024. In the initial coverage phase, you will pay 25% of your drug costs once you reach the deductible, up to $2,000 in out-of-pocket expenses. After you hit this cap, you'll enter what's referred to as catastrophic coverage, which eliminates all further out-of-pocket expenses for prescription medications.
The Centres for Medicare & Medicaid Services (CMS) estimates that this change will save Medicare participants approximately $7.4 billion a year. Over 18.7 million beneficiaries, or almost 36% of all Part D enrolment, would save an average of almost $400 per person in 2025.
It's important to remember that these are just estimates and projections. The final numbers may vary slightly. It's always best to check with Medicare directly or consult with a trusted insurance advisor for the most accurate and up-to-date information.
