2025 Medicare Updates Seniors Need to Know

2025 brings big improvements to Medicare, especially for those managing prescription costs. With a bold $2,000 cap on yearly out-of-pocket drug spending, a new monthly payment plan, and updated income-based premiums—this is a year to stay informed and in control of your benefits.

1. 🚫 $2,000 Cap on Part D Drug Costs

Starting January 1, 2025, your total out-of-pocket expenses for covered Part D medications—including deductibles, copays, and coinsurance—are capped at $2,000 per year.

That means no more unpredictable drug bills through the donut hole. Once you hit the limit, you’ll have catastrophic coverage with no further payments required 

2. 🗓️ New Monthly Prescription Payment Plan

You can now choose to spread drug costs evenly across 12 months through the Medicare Prescription Payment Plan—also known as the “smoothing” option. This helps avoid big bills at the pharmacy.

Plans are required to offer this option starting in 2025, and you can enroll anytime during the year.

There’s no extra cost—just a smoother payment schedule

3. 💸 IRMAA Surcharges Aren’t Going Away

Income-related surcharges (IRMAA) for Part B and Part D premiums continue in 2025 and are based on your 2023 tax return. Higher earners could still see monthly IRMAA fees between about $14 and $86 on top of standard premiums. Your premiums may change next year if your reported income changes.

🔍 What it Means for You

• Capped annual drug costs: Maximum of $2,000 out-of-pocket—no surprises.

• Predictable spending: Monthly prescription billing eases budgeting.

• Income awareness: Verify your IRMAA status to avoid over-paying.

✅ Next Steps

1. Review your Annual Notice of Changes (ANOC) to see plan updates.

2. Decide if the monthly payment plan suits your budget.

3. Confirm your income bracket to manage your IRMAA charges.

4. Schedule your free, no-pressure Medicare Review—just reply “MEDICARE” or give me a call.

Stay ahead of these new rules now to protect your coverage and control your costs. Let’s make sure you're getting every benefit you deserve. Call Senior Help And You LLC dba AJF Insurance Services at 520-252-5275.

By: Albert Ferrin - June 2, 2025

Senior Help And You