If you are a Medicare beneficiary, you are probably familiar with the Annual Notice of Change (ANOC) you receive each fall detailing the upcoming changes to your Part D prescription drug plan. While these notices may not be the most exciting read, this year’s ANOC may contain some significant updates for 2025.
Here are five key changes coming to Medicare Part D next year and what you need to know to make informed decisions during the open enrollment period (Oct. 15 through Dec. 7).
1. Plans are Merging or Ending
Many Medicare Part D plans are being discontinued or merged with other plans in 2025, especially for members of Aetna, AARP/UnitedHealthcare, and Mutual of Omaha plans.
For example, individuals with a low-cost Aetna SilverScript SmartSaver plan in 2024 may be moved to SilverScript Choice in 2025, potentially resulting in increased monthly premiums unless they switch plans.
It’s important to review your ANOC to determine if your plan is changing and consider exploring alternative options during open enrollment.
What to do: Check your ANOC for any changes and compare different plans to ensure you have the coverage you need.
Medicare will have significant changes in 2025. Compare Medicare Part D Plans during open enrollment
2. Premiums Variation
The average monthly premium for stand-alone Medicare Part D plans is projected to be $40 in 2025, slightly lower than in 2024. However, individual costs may vary significantly.
It’s crucial to review the cost comparison sections in your ANOC and explore different options during open enrollment to find the best deal.
What to do: Compare premium and cost changes in your ANOC and consider switching plans if a better option is available.
3. New Out-of-Pocket Cap
Out-of-pocket costs for Medicare Part D will be capped at $2,000 in 2025, providing financial relief for beneficiaries.
What to do: No action is required to benefit from the new cap, and your plan will track your progress towards reaching it.
4. Elimination of the “Donut Hole”
Starting in 2025, there will no longer be a Medicare Part D coverage gap, simplifying the payment structure for beneficiaries.
What to do: No action is needed as the donut hole will be eliminated for all beneficiaries in 2025.
5. Medicare Prescription Payment Plan
The Medicare Prescription Payment Plan offers a new way to manage out-of-pocket costs by spreading payments over time.
What to do: Evaluate if the payment plan aligns with your budget and consider enrolling if it can help manage high medication costs.
All Medicare Part D plans in 2025 will offer the Medicare Prescription Payment Plan, and beneficiaries identified as potential candidates will be contacted by their plans for enrollment.
Make sure to stay informed about these changes and take advantage of the resources available during open enrollment to make the best decisions for your healthcare needs.