The Part D of Medicare will see an increase in base monthly premiums, and the Inflation Reduction Act makes drugs more affordable. The Centers for Medicare and Medicaid Services is giving us an idea of some changes you can expect to see with Medicare Part D in 2025. The Inflation Reduction Act of 2022 rules are also starting to go into effect, changing the way you pay for medications in 2025.
Every year, the Social Security Administration (SSA) makes the decision about what the costs associated with the Medicare program will be. It then increases or reduces premiums and deductibles using the rules established in the Social Security Law. CMS is expected to complete the 2025 Medicare changes in the coming weeks and months. We will continue to provide updates as more details of the 2025 plan are released, but below are some changes you can expect.
When will we know about changes to Medicare Part A?
Part A helps pay for medical care you receive in hospitals, critical access hospitals, and skilled nursing facilities. About 99% of Medicare beneficiaries get Part A for free because they paid Medicare taxes while they were in their working years, according to the Centers for Medicare & Medicaid Services. The previous year, CMS made an announcement of the 2024 changes to Part A on October 12, 2023.
When will we know about changes to Medicare Part B?
Part B covers medical services such as doctor’s services and outpatient care. Part B may be optional and by 2024, the Part B premium is $174.70 per month. CMS announces each year’s Part B adjustments in the fall, so we’ll have to wait a while before we can get all the details for 2025.
Medicare Part C
Medicare Advantage, or Medicare Part C, will also get some updates. Part C plans come from private companies and may provide additional coverage, such as vision, hearing, dental, and health and wellness programs.
The price of this alternative changes depending on the plan you choose. An upcoming change to Part C will remind members of what they might be leaving out. Starting in 2025, Medicare Advantage participants will receive a notification mid-year to inform them of any unused benefits that are available and that they may benefit from.
This will remind you to use your benefits and will allow you to reassess If you need the specific plan you purchased. When it’s time to re-enroll, you’ll be able to make a more informed decision about whether to continue with your current plan or switch to another.
Changes to Medicare Part D for 2025
Part D can help defray the costs of prescription drugs. What’s new about Medicare Part D for next year, 2025? The Inflation Reduction Act brings a number of changes to Part D plans this year.
According to CMS, the base premium for Part D beneficiaries will increase by $2.08, or 6%, from $34.70 to $36.78. The IRA adds a 6% limit to basic Part D plans, but actual premiums may change. CMS said it will release preliminary averages for Part D premiums later this summer.