Medicare policies change every year, and 2025 brings some important updates that could affect your coverage and costs. Whether you’re enrolled in Original Medicare, a Medicare Advantage plan, or a Part D prescription drug plan, it’s important to know what’s new.

This guide covers the key Medicare changes for 2025, including new payment options for prescriptions, cost updates, and legislative efforts to support people who use Medicare.

Staying informed means you can avoid surprises and make the most of your benefits. Let’s get started!

Medicare Premiums and Deductibles Are Changing

Every year, Medicare adjusts the costs of premiums, deductibles, and out-of-pocket expenses. In 2025, beneficiaries will see the following changes:

Medicare Part 2024 Cost 2025 Cost Change
Part B Monthly Premium $174.70 $185.00 +$10.30
Part B Deductible $240 $257 +$17
Part A Hospital Deductible $1,632 $1,676 +$44

Part A is free for most people, but those who did not work for at least 10 years in Medicare-covered employment may pay up to $506 per month for Part A.

If you rely on Part B for doctor visits and outpatient care, the higher premium and deductible mean slightly more out-of-pocket costs in 2025.

New Monthly Payment Option for Prescriptions

Starting in 2025, Medicare will allow you to spread out your prescription drug costs over the year.

What this means for you:

  • Instead of paying large out-of-pocket costs all at once, you can opt into a payment plan that allows monthly payments.
  • This program does not lower drug prices but helps manage high costs over time.
  • Participation is optional—you must enroll to use this benefit.

If you have high prescription costs, this could be a helpful way to budget for your medications.

New Discounts for Brand-Name Prescription Drugs

In 2025, a new manufacturer discount program is replacing the coverage gap (also known as the ‘donut hole’) discount program.

Here’s how it works:

  • Brand-name drug discounts – Drug manufacturers will offer a 10% discount on brand-name medications during the initial coverage phase of Part D.
  • Additional savings in catastrophic coverage – Once you hit the catastrophic coverage phase, manufacturers will cover 20% of the cost of brand-name drugs.

These changes help reduce your out-of-pocket drug costs, especially if you take expensive medications.

Additionally, beginning in 2025, Medicare will cap out-of-pocket prescription drug costs at $2,000 per year.

Once you reach this limit, Medicare will cover 100% of your prescription drug costs for the remainder of the year!

Medicare Expands Preventive Care Coverage

Preventive care helps catch health problems early, reducing long-term healthcare costs. For 2025, Medicare is adding new preventive services to its coverage, including:

  • Expanded behavioral health screenings for conditions like depression and anxiety.
  • More comprehensive cardiovascular risk assessments during routine checkups.
  • Continued full coverage for vaccines, including flu, pneumonia, and COVID-19 shots.

Taking advantage of Medicare’s no-cost preventive services can help you stay healthier and avoid costly treatments later.

Medicare Enrollment Periods Are Staying the Same

Although costs are changing, Medicare’s enrollment periods remain the same:

Enrollment Period Who It’s For Dates
Initial Enrollment Period New Medicare beneficiaries 3 months before, the month of, and 3 months after turning 65
General Enrollment Period Those who missed their Initial Enrollment January 1 – March 31
Medicare Advantage & Part D Open Enrollment Those switching Medicare Advantage or Part D plans October 15 – December 7
Medicare Advantage Open Enrollment Current Advantage plan members who want to switch January 1 – March 31

Not sure when to sign up for Medicare or change your plan? Get in touch with our licensed Medicare advisors today at (451) 745-1457   to avoid late penalties.

What These Medicare Changes Mean for You

Medicare’s 2025 updates bring some cost increases, new prescription payment options, and efforts to improve access to care. Here’s what you should know:

  • Medicare premiums and deductibles are increasing slightly.
  • A new monthly payment option for prescriptions helps manage drug costs.
  • Brand-name drug discounts will reduce out-of-pocket costs for some seniors.
  • Legislators are working to protect Medicare physician payments.
  • Preventive care coverage is expanding.

These changes could affect your Medicare coverage and costs, so reviewing your plan and exploring your options is essential.

If you have questions about how these updates impact your Medicare plan, talk to our licensed Medicare advisors today. Just call us now at (451) 745-1457 .