CMS (Centers for Medicare and Medicaid Services) has released the new costs for premiums and deductibles for 2025 Medicare coverage. Each year, costs are adjusted, deductibles and premiums re-set and released to the public. For the 2025 plan year the following costs will be in place for Original Medicare:
Part A Deductible: $1676 per hospital admission (unless within the same 60-day period)
Part B Premium: $185.00/month
Part B Deductible: $257/year
Part B Coinsurance: 20% (remains the same)
Part D Deductible: $590/annual– paid before prescription drug cost share begins**
Part D Initial Drug Phase: up to $2000 in out-of-pocket expenses
IRMAA – applies to single HH earning $106K or married HH earning $212K
Social security COLA Increase for 2025: 2.5%
**NEW for 2025 – There is a new Medicare Payment Plan M3P available to help spread out the costs of your prescription medications over a 12-month payment plan. Members of plans can enroll in the Rx Payment Plan beginning December 8 – 31 for Jan 1 2025 start. Enrollment in the payment plan is optional and administered directly by your MAPD/PDP carrier (NOT your pharmacy). Enroll directly with your carrier between December 8-31.
***NEW for 2025 – The Gap or Donut Hole phase of the Medicare Prescription Drug Plan has been eliminated for 2025. Catastrophic phase begins once you have incurred $2000 in out-of-pocket drug costs. Costs go to $0 during the Catastrophic phase. 2025 Drug plans now have 3 phases: Deductible, Initial, Catastrophic.
For most Rx plans in 2025:
Deductible: $590
Initial Phase: 25% cost share for medications until you reach $2000 in costs
Catastrophic: $0
Medicare resets its costs annually. These changes will take place beginning January 1, 2025 through December 31, 2025.