Medicare Advantage Costs Expected to Decrease 6.75% in 2025
Good news on Medicare Advantage costs! Most enrollees who remain in their plan will see lower or no increase in their premiums in 2025.
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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
Don't Overpay the IRS: 6 Tax Mistakes That Could Be Raising Your BillTax Tips Is your income tax bill bigger than expected? Here's how you should prepare for next year.
-
Flashback Finance: The Cost of Retiring the Year You Were BornJust like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
How One Hospital Visit Overseas Could Wreck Your FinancesProper planning can give you peace of mind and protection, regardless of what happens on your trips.
-
Flashback Finance: The Cost of Retiring the Year You Were Born
Just like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
How One Hospital Visit Overseas Could Wreck Your Finances
Proper planning can give you peace of mind and protection, regardless of what happens on your trips.
-
It's Time to Rethink What 'Aging Well' MeansDon’t fall into the trap of thinking there is a "right way" to age. Here's how to reframe aging in a healthy, achievable way.
-
Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial PlannerThese practical resources and benefits can help military spouses with managing a budget, tax and retirement planning, as well as supporting their own career
-
3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial PlannerAs data breaches and cyberattacks increase, it's vital to maintain good data hygiene and reduce your personal information footprint. Find out how.
-
Here's Why You Can Afford to Ignore College Sticker PricesCollege tuition fees can seem prohibitive, but don't let advertised prices stop you from applying. Instead, focus on net costs after grants and scholarships.
-
The New Average Divorce Rate By Age: Are You in the Risk Zone?While the overall divorce rate has seen a small but steady decline, gray divorces have been on the rise since the 1990s.
-
We Retired at 70 With $4.3 Million. My Wife Won't Spend 'Our Grandkids' Inheritance,' but I Want to Travel.I want to travel while we are still healthy, but my wife wants to pass down our wealth. Who is right?
