Premiums for Medicare drug plans will be lower next year

Average monthly premiums for Medicare Part D and Medicare Advantage plans will decline in 2025, the Centers for Medicare & Medicaid Services (CMS) announced Friday.

The average monthly premium for a standalone Part D prescription plan is expected to be $40 next year, down $1.63, or nearly $20 per year.

Average monthly premiums for Medicare Advantage are expected to decrease by $1.23 per month to $17 in 2025. Medicare Advantage members must be enrolled in Parts A and B of Medicare. Part A is free if she or her spouse has worked and paid Medicare taxes for at least 40 quarters, which is 10 years. Part B premiums are recalculated each year.

About 60 percent of Medicare Advantage enrollees who remain in their current plan will not receive an MA premium next year, CMS officials say. The agency expects more than four out of five enrollees will receive the same or lower premiums in 2025 if they stay on the same plan.

Coming soon: Medicare Open Enrollment Season

Even if average premiums don't increase, Part D and Medicare Advantage plans may still make other changes to their drug lists and costs, so comparing plans during open enrollment from October 15 to December 7 remains important. One of the most significant changes to prescription plans will take effect next year, when out-of-pocket costs for covered drugs will be capped at $2,000, far less than what someone with high drug costs will pay this year.

Average premiums will be lower next year, in part because of a financial incentive CMS is offering insurers to keep participants' monthly bills stable. Almost all companies agreed to participate.

People with Medicare have access to an average of 15 standalone Part D plans in their region and about 34 Medicare Advantage plans with prescription drug coverage. A new plan would take effect on January 1st.

Watch for changes to your plan's other benefits and costs

If you have a Medicare Advantage plan, pay attention to coverage of your medical needs and details about other benefits, such as: B. Copayments and restrictions on dental care.

Even if you're happy with your Part D or Medicare Advantage plan, read the annual change notice to find out what will be different in 2025. You should receive this document from your plan by the end of September.

Starting October 1, you can use the Medicare Plan Finder to compare your options for all Part D and Medicare Advantage plans available in your region for 2025.