Donna LeValley
Happily, Medicare Advantage costs are among the few retirement expenses going down in 2025. The average monthly premium for all Medicare Advantage (MA) plans is projected to decrease 6.75%, from $18.23 this year to $17.00 in 2025, the Centers for Medicare & Medicaid Services (CMS) said.
Almost 83% of enrollees will have the same or slightly lower premium in 2025 if they continue in the same plan, according to a CMS fact sheet about Medicare Advantage and Plan D premiums.
It's important to be aware of the Medicare Advantage plan and Part D premium decreases ahead of the start date for the Medicare Advantage Open Enrollment Period (MAOPE) that runs from from January 1 – March 31. Those with Medicare Advantage plans can change MA plans or switch to Original Medicare with the option to buy Part D prescription drug coverage.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Lower Medicare Advantage costs, but fewer plans to choose from
Medicare Advantage plan choices have decreased in 2025, according to the independent policy analysis organization KFF. They found that the average Medicare beneficiary will have the option of 34 Medicare Advantage prescription drug (MA-PD) plans in 2025, two fewer than the 36 options available in 2024. The average beneficiary has 42 options for plans without prescription drug coverage in 2025, compared to 43 options in both 2023 and 2024.
What you'll pay in 2025
Unlike Original Medicare, MA plans have out-of-pocket maximums similar to commercial insurance. The maximum out-of-pocket expenses for MA participants in-network is $9,350 and $14,000 for out-of-network services in 2025.
Starting January 1, 2026, MA organizations will be required to send a mid-year notice to members, highlighting any unused supplemental benefits after June 30, but no later than July 31st of the plan year.
CMS announced in October that the average total monthly premium for Medicare Part D coverage is expected to decrease by 13%, from $53.95 in 2024 to $46.50 in 2025. In 2025, individual out-of-pocket spending for covered Part D drugs will be capped at $2,000 and will have the option to pay out-of-pocket prescription drug costs in the form of monthly payments over the course of the plan year instead of all at once to the pharmacy.
If you’re interested in taking advantage of Medicare Advantage Open Enrollment, which is scheduled to run through March 31, here’s what you need to know to be ready and here are 10 things to know to prepare.
RELATED CONTENT
-
A Comfortable Retirement is About More Than MoneyWhen it comes to a happy retirement, money can’t buy these things.
-
I'm 68 and Health Issues Forced Me to Retire. Should I Claim Social Security or Use My Savings Until I'm 70?We asked financial planning experts for advice.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
Noctourism: The New Travel Trend For Your Next Trip"Noctourism" is a new trend of building travel and vacations around events and plans that take place at night. Take a look at some inspiring noctourism ideas.
-
Eight Tricks to Shop for Glasses if You're Over 50Shopping for glasses often gets trickier — and more expensive — as you age. If you've over 50, take these steps when you set out to buy a new pair.
-
Decluttering Tips to Get a Head Start on DownsizingStrategies include starting small, adopting a system, getting help from others and being ruthless about what to keep, even when it comes to sentimental items or inherited possessions.
-
My First $1 Million: Electric Utility Executive, 56, South CarolinaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard AboutTiming is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
