Medicare beneficiaries can expect several changes to their coverage in 2025. The Centers for Medicare & Medicaid Services (CMS) is preparing to implement new rules from the 2022 Inflation Reduction Act (IRA). Part A, which covers inpatient care in hospitals and skilled nursing facilities, will see updates announced by CMS in October.
Nearly all Medicare beneficiaries receive Part A for free due to paying Medicare taxes while working. Part B, covering medical services like doctors’ appointments and outpatient care, has a premium set at $174.70 per month for 2024. Adjustments for 2025 will be announced by CMS in the fall.
Medicare Advantage, or Part C, is offered by private companies and provides additional coverage such as vision, hearing, dental, and wellness programs. In 2025, enrollees will receive a mid-year notification about unused benefits to help them make informed decisions during reenrollment.
Medicare updates on coverage changes
Significant changes are coming to Part D, which covers prescription drug costs. The base beneficiary premium will increase by 6% to $36.78. A new $2,000 annual out-of-pocket maximum for medications will be introduced, benefiting those who need expensive monthly medications.
The previous four stages of coverage, including the Coverage Gap or “doughnut hole,” will be simplified. Participants will only need to pay their deductible (up to $590) and make copayments until reaching the $2,000 limit. A new opt-in payment plan will allow participants to spread medication costs throughout the year instead of paying upfront, helping to manage expenses more evenly.
These changes aim to make Medicare more manageable and affordable for participants. CMS will continue to release more details about the enhancements in the coming months.
- CNET.”Changes to Medicare Are Coming in 2025: Here’s What You Can Expect”.
- CourierJournal.”ANOC Booklet”.
- ReviewJournal.”When will the new ‘Medicare & You’ handbook be released?”.