Typically, the beginning of a new year brings about changes, and Medicare is not an exception to this rule. Beneficiaries may be affected by a number of changes to Medicare rules that are scheduled to take effect in 2025.
These includes modifications to premiums, deductibles, and prescription coverage.
2025 Medicare coverage
As we move closer and closer to the new year, here is what you need to be aware of:
Changes to Part B Premiums
If you were enrolled in Medicare Part B before 2025, your premium may increase. For new enrollees in 2025, the standard monthly premium is set at $185.
However, individuals earning more than $94,000 annually may face higher premiums.
Adjustments to deductibles
Medicare’s deductibles are also changing.
For Part A, which covers hospital care, the deductible will increase from $1,632 in 2024 to $1,676 per benefit period in 2025.
Keep in mind that this deductible can apply multiple times within a year, depending on the number of benefit periods you have.
For Part B, which covers outpatient care, the annual deductible will rise to $257 in 2025.
Improvements in prescription drug coverage
A significant positive change for 2025 is the new $2,000 cap on out-of-pocket spending for prescription drugs.
Additionally, the infamous “donut hole,” or coverage gap, will be eliminated. These changes are expected to provide financial relief for individuals who rely on costly medications.
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Reducing Medicare costs
For those looking to minimize Medicare expenses, several programs and resources are available:
- Plans that provide extra insurance coverage, known as Medigap Plans, can assist in covering expenditures such as deductibles and copays.
- Medicaid is a program that is based on a person’s annual income and provides additional benefits to those who are qualified.
- Extra Assistance is a federal program that provides participants who meet the requirements with a reduction in the cost of prescription drugs of roughly $5,900 per year.
- There are four different programs that offer financial support to participants with modest incomes through the Medicare Savings Programs section.
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You require assistance?
The process of navigating these changes can be difficult. You can reach Medicare at 1-800-MEDICARE (1-800-633-4227) if you have any inquiries regarding the new Medicare rules or if you would like to get additional information.
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