Medicare Premiums to Decline Slightly in 2025 Amid Stability Efforts

CMS projects a decrease in average premiums for Medicare Advantage and Part D plans, with new benefits and protections for enrollees.

Average Medicare Advantage monthly premiums are expected to drop by 6.75% to $17 in 2025.
Part D prescription drug plan premiums will decrease by $7.45, bringing the average to $46.50 per month.
The Biden administration's Inflation Reduction Act introduces a $2,000 cap on annual out-of-pocket drug costs.
Despite some insurers exiting the market, most beneficiaries will see stable or lower premiums and enhanced benefits.
Open enrollment for Medicare plans begins on October 15 and runs through December 7, 2024.