There's quite a bit of buzz around the changes for 2025 Medicare Part D plans and Advantage plans. I've already had multiple inquiries, and the talk is that this year will be a big one for lots of switching.
Do you need to worry? I say no, but you do want to stay aware.
Important changes coming to Part D plans:
As part of the Inflation Reduction Act, Part D enrollees in 2025 will have a maximum out-of-pocket (MOOP) expense of $2,000 for the calender year, which should provide great relief to people with high prescrition drug costs. The $2,000 cap will be indexed to rise with inflation in the coming years.
Another provision in the Inflation Reduction Act, called the Medicare Prescription Payment Plan (MPPP), will allow for an alternate payment structure for enrolles to pay for their prescrition drugs. Referred to commonly as “smoothing,” the MPPP will allow people enrolled in a Part D plan to have the option of spreading their out-of-pocket Part D costs over the calendar year rather than paying directly at the pharmacy counter. When someone opts into the MPPP, their Part D provider will pay the beneficiary’s deductible, coinsurance, and/or copay, depending on their plan details directly to the pharmacy, then the provider will send a monthly bill to the beneficiary. It is important to note that the MPPP will not reduce or increase a person’s Part D cost-sharing obligations–it only spreads them out so that they are hopefully easier to pay.
The Open Enrollment Period for 2025 will run from October 15 to December 7. During this period, Medicare enrollees can:
Join, drop, or switch to another Medicare Advantage Plan (or add or drop a Part D Precription Drug Plan).
Switch from Original Medicare to a Medicare Advantage Plan or from a Medicare Advantage Plan to Original Medicare.
Join, drop, or switch to another Medicare drug plan if you’re in Original Medicare.
Have questions? Please let me know. Medicare is confusing, so let me help you make decisions that are best for your needs.