Medicare Minute: What’s New for Medicare in 2025?

Your Medicare coverage and costs can change annually, so it’s important to review your benefits.

Here’s an overview of what’s new in 2025. (Download a detailed breakdown – PDF Handout)

Part A: Hospital Insurance

Part B: Medical insurance

Part D: Prescription drug coverage

Changes to Part D in 2025

The $2,000 cap on out-of-pocket drug costs

• Starting in 2025, your annual out-of-pocket Part D costs are capped at $2,000. After you reach
  this out-of-pocket limit, you owe nothing for covered drugs for the rest of the year.
• Your Part D plan should keep track of how much money you have spent out of pocket for
  covered drugs and your progression through coverage periods—and this information should
  appear in your monthly statements.
• Remember that only costs associated with covered drugs help you move through the
  coverage phases. If you spend money on non-covered drugs, those costs will not help you
  reach the annual cap.

The Medicare Prescription Payment Plan (MPPP)

• Beginning in 2025, you have the option to sign up for a payment plan for Part D out-of-pocket
  costs.
• The MPPP allows you to spread your drug costs throughout the year, with the goal of helping
  you manage your monthly expenses.
• For example, if you anticipate reaching the annual Part D cap quickly due to expensive
  medications, you can spread those costs throughout the year—rather than paying a lot in the
  first months of the year and nothing in later months of the year.
• When you sign up for the MPPP, your plan will communicate your choice to your pharmacy.
  You should pay $0 at the pharmacy for your covered Part D drugs. Your plan will pay the costsharing at the time of your purchase and send monthly bills to you for the cost-sharing
  amounts. You pay no fees or interest, even if your payment is late.

“New” Medicare card schemes

Do you know what isn’t new this year? Your Medicare card.

Medicare beneficiaries are not receiving new cards this year, but scammers
may try to convince you otherwise. For example, scammers may falsely tell
you that Medicare is issuing new cards—perhaps a card that is plastic, or a
card that has a chip in it. The scammers may tell you that for them to send
your new card, you need to verify your identity, which could include your
Medicare number. This is an attempt to get your personal or financial
information.

Here are some red flags to look for:

• Unsolicited calls from anyone claiming to be from Medicare
• Anyone needing your personal information so that they can send you an updated Medicare
  card
• Anyone saying your card is expiring, and they need to send you a new one or you will be
  charged a fine
• Anyone stating Medicare is issuing new cards and you need to verify your number

Who to contact

• Contact your State Health Insurance Assistance Program (SHIP) if you have
questions about 2025 coverage, enrollment periods, or cost assistance programs. In Southwest Florida, call 866-413-5337 or email shineinfo@aaaswfl.org.
• Contact your Senior Medicare Patrol (SMP) if you may have experienced
Medicare fraud, errors, or abuse. In Southwest Florida, call 866-413-5337 or email shineinfo@aaaswfl.org.
• Contact your Medicare Advantage or Part D plan to ask about 2025 changes
to your costs or coverage. In Southwest Florida, call 866-413-5337 or email shineinfo@aaaswfl.org.
• Call 1-800-MEDICARE (1-800-633-4227) to request another copy of your 2025
Medicare & You handbook.

The Medicare Rights Center is the author of portions of the content in these materials but is not
responsible for any content not authored by the Medicare Rights Center. This document is
supported by the Administration for Community Living (ACL), U.S. Department of Health and
Human Services (HHS) as part of a financial assistance award totaling $2,534,081 with 100
percent funding by ACL/HHS. The contents are those of the author(s) and do not necessarily
represent the official views of, nor an endorsement, by ACL/HHS, or the U.S. Government.