Are Medicare Drug Costs Increasing in 2025?

If you have Medicare Part D and rely on it to help pay for medications regularly, you’ll be happy to learn that changes are coming in 2025 that may help you save money. If you have high drug costs due to chronic conditions, you may be paying less out-of-pocket. 

What is Medicare Part D? 

Medicare Part D is prescription drug coverage. Individuals with Original Medicare Parts A and B can enroll in a stand-alone Prescription Drug Plan (PDP) to help cover their costs of medications prescribed by a doctor. Millions of people eligible for Medicare choose to get their coverage through a Medicare Advantage (MA) plan instead. Offered by private companies, MA plans are required to include the same Part A and Part B benefits as Original Medicare, but most MA plans also include prescription drug coverage, among other additional benefits. 

Will Medicare Part D costs change in 2025?

Most people with Part D will share the costs of their coverage through copayments, a deductible, and pay a monthly premium, which may vary among plans. In 2025, the base Part D premium is $36.78, an increase from 2024. Your income based on IRS tax returns may affect your total amount. 

The maximum standard deductible for a Medicare Advantage plan with prescription drug coverage in 2025 is $590. When you’ve paid your deductible, you’ll be responsible for copayments, which will vary from plan to plan. There’s good news for people who have high drug costs. In 2025, Part D plans have a $2,000 cap on out-of-pocket costs.

Your costs with Medicare Part D

The total cost of your prescription medications with Part D will depend on a wide range of factors. The prescription drug coverage you enroll in, where you live, what pharmacy you use, and, of course, your needs will affect your total drug expenses for the year. 

Switching Medicare Part D plans

If your drug costs were too high over the past year, or your needs have changed, you may consider switching to a different plan during one of the following enrollment periods:

• Open Enrollment (October 15 – December 7) During Medicare’s Open Enrollment Period, you can switch stand-alone Prescription Drug Plans (PDPs), switch from one Medicare Advantage plan (with or without prescription drug coverage), Switch from Original Medicare to an MA plan (with or without prescription drug coverage), or revert to Original Medicare (and enroll in a PDP at that time).
• Medicare Advantage Open Enrollment Period (January 1 – March 30) During the MA-OEP, you can make one change from an MA plan to another MA plan. 
• Special Enrollment Period (SEP) – You may be eligible for a Special Enrollment Period if you experience a qualifying life changing event, such as becoming dual-eligible, moving into an institution, or getting married. 

As you review PDPs or Medicare Advantage plans with prescription drug coverage, compare costs and benefits. If you’re already taking prescribed medications, check plan formularies to make sure you’ll have the coverage you need before enrolling.