Tue Nov 12 05:30:00 UTC 2024: ## Medicare Costs to Rise in 2025, But New Prescription Drug Cap Offers Relief
**Washington, D.C.** – The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly premium for Medicare Part B will increase to $185 in 2025, a $10.30 jump from the 2024 rate. The annual deductible for Part B will also rise, increasing from $240 to $257. These increases are largely attributed to anticipated price changes and utilization growth consistent with historical trends.
While these costs are going up, there is good news for Medicare beneficiaries. The average monthly premium for a stand-alone Medicare Part D prescription drug plan is projected to decrease from $41.63 in 2024 to $40 in 2025. Furthermore, a historic new cap on out-of-pocket prescription drug costs will be implemented in 2025. This $2,000 cap, championed by AARP, is expected to provide significant savings for nearly 3.2 million Americans next year.
The annual deductible for Medicare Part A, which covers inpatient care, will also increase from $1,632 to $1,676 in 2025. Beneficiaries who stay in the hospital beyond 60 days will also see a slight increase in their daily coinsurance amount.
The cost-of-living adjustment for Social Security payments in 2025 is 2.5%, which will result in an average monthly increase of nearly $50 for beneficiaries. Monthly Medicare Part B premiums are typically deducted directly from Social Security payments.
Despite the increasing costs, these changes aim to provide greater financial protection for beneficiaries. The new prescription drug cap, in particular, is a significant victory for those struggling with high medication costs.
First Piper 