Annual Changes
The meaning of annual changes and what to look for.
What's Different About Medicare in 2025?
Every October, Medicare announces changes for the next year. Some years bring big surprises. Others just small tweaks to costs and coverage.
The good news? Most of the major changes for 2025 help people save money or get better benefits. Here's what matters most.
Part B Premium
The standard Part B premium is $185.00 per month in 2025.
Your actual premium might be different if you have higher income. Medicare charges extra for people making more than $103,000 (single) or $206,000 (married filing jointly).
| Single Income | Married Filing Jointly | Monthly Premium |
|---|---|---|
| $103,000 or less | $206,000 or less | $185.00 |
| $103,001–$129,000 | $206,001–$258,000 | $259.00 |
| $129,001–$161,000 | $258,001–$322,000 | $370.90 |
| $161,001–$193,000 | $322,001–$386,000 | $482.80 |
| $193,000+ | $386,000+ | $518.70 |
The $2,000 Drug Cost Cap is Here
This is the biggest change for 2025. Your Part D drug costs are now capped at $2,000 per year.
Once you hit that limit, you pay nothing more for covered prescriptions. No matter if your drugs normally cost $500 or $5,000 per month.
Real-world impact: If you take expensive medications, this cap could save you thousands. Some people were paying $10,000+ per year before this change.
2025 Medicare Advantage Benefit Updates
Some Medicare Advantage plans expanded supplemental perks for 2025 (examples: limited dental, vision allowances, wellness or OTC credits). Availability and actual value vary widely by plan and county.
These extra benefits are not guaranteed year to year and most come with network, allowance, or prior authorization limits. Weigh them against potential higher copays if you need frequent care and the plan's provider access rules.
Medigap Plans Stay the Same
No major changes to Medicare supplement plans this year. The standardized benefits remain the same across all insurance companies.
Premiums might go up or down depending on your state and insurance company. Shop around during your birthday month if your state allows it.
What Should You Do Before December 7?
Review your current coverage during Open Enrollment (October 15 to December 7). Even small changes could save you money or get you better benefits.
Check if your doctors are still in-network. Make sure your prescriptions are covered at the same cost level. Look at total costs, not just premiums.
Don't Wait Until the Last Minute
Changes you make during Open Enrollment start January 1, 2025. But don't wait until December to review your options.
Plans get more popular as the deadline approaches. Some might even stop accepting new members if they get too full.