Medicare Drug Plan Premiums Expected to Rise Up to $50 Monthly in 2025
Medicare enrollees buying optional Part D drug coverage may face monthly premium hikes of up to $50 when shopping for next year’s coverage. These plans, offered by private insurers for original Medicare enrollees, are expected to see increases due to higher drug spending, new out-of-pocket caps, and reduced federal funding for premium stabilization. Experts advise rolling over existing plans and shopping during open enrollment starting October 15. Key factors include rising drug costs from new medications and increased use of expensive treatments, a $2,000 annual out-of-pocket cap for prescriptions under the Inflation Reduction Act, and the Trump administration’s decision to cut federal funding for premium stabilization by 40%, allowing potential premium increases of up to $50 monthly.