Key Takeaways

Medicare beneficiaries who are enrolled in a Medicare Advantage plan or Medicare Prescription drug plan (Medicare Part D) have to re-enroll every year between October 15 and December 7.

“From one year to the next, Medicare Advantage plans can change their premiums, cost-sharing requirements, provider networks, or prior authorization requirements,” the analysis stated. “For beneficiaries who simply stay put in their existing plan, such changes could lead to unexpected, avoidable costs and disruptions in care.”

By now, you should have already received your Medicare “Annual Notice of Change" via email or in your mailbox. The notice outlines any changes in last year’s plan’s costs and coverage that will take effect on January 1.

It’s also important to know about several big changes for Medicare in 2025.

Prescription Drug Costs Capped at $2,000 Per Year

Under new rules for 2025, out-of-pocket medication expenses will be capped at $2,000. This limit applies to deductibles, copayments, and coinsurance for covered drugs but doesn’t apply to premiums.

In 2025, Part D plans can have a deductible of up to $590. After meeting the deductible, you will pay copayments until your total out-of-pocket costs reach $2,000—an amount many beneficiaries will reach, according to Medicare.

Monthly Payment Option for Prescription Drugs

Beginning in 2025, all Medicare prescription drug plans, including Medicare Advantage plans, will allow enrollees the option to spread out their prescription drug out-of-pocket costs over 12 months.

Ask your drug plan about the Medicare Prescription Payment Plan. If you enroll, the plan will notify the pharmacies you choose, and instead of paying upfront at the pharmacy, you will receive a monthly bill. For example, you could spread the cost of a 90-day prescription over three months.

Midyear Statements from Medicare Advantage Plans

A new Medicare program called Guiding an Improved Dementia Experience (GUIDE) supports caregivers of people with dementia who are enrolled in Medicare. The program includes a 24/7 support line, a free navigator to help find medical and other services and up to $2,500 a year for respite care, which can include in-home care or adult daycare programs.

To be eligible, the person with dementia must have a diagnosis and cannot be in hospice or a nursing home.

When Medicare Won’t Pay for Nursing Home Care

What This Means For YouReviewing your Medicare plan each year is crucial to avoid unexpected costs and ensure you’re getting the best coverage. Changes in 2025, including a cap on drug costs and new support for dementia caregivers, may offer some financial relief.

What This Means For You

Reviewing your Medicare plan each year is crucial to avoid unexpected costs and ensure you’re getting the best coverage. Changes in 2025, including a cap on drug costs and new support for dementia caregivers, may offer some financial relief.

3 SourcesVerywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Centers for Medicare and Medicaid Services.Medicare Advantage and Medicare prescription drug programs to remain stable as CMS implements improvements to the programs in 2025.Centers for Medicare and Medicaid Services.Contract year 2025 Medicare Advantage and Part D final rule (CMS-4205-F).Centers for Medicare and Medicaid Services.Guiding an Improved Dementia Experience model.

3 Sources

Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Centers for Medicare and Medicaid Services.Medicare Advantage and Medicare prescription drug programs to remain stable as CMS implements improvements to the programs in 2025.Centers for Medicare and Medicaid Services.Contract year 2025 Medicare Advantage and Part D final rule (CMS-4205-F).Centers for Medicare and Medicaid Services.Guiding an Improved Dementia Experience model.

Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Centers for Medicare and Medicaid Services.Medicare Advantage and Medicare prescription drug programs to remain stable as CMS implements improvements to the programs in 2025.Centers for Medicare and Medicaid Services.Contract year 2025 Medicare Advantage and Part D final rule (CMS-4205-F).Centers for Medicare and Medicaid Services.Guiding an Improved Dementia Experience model.

Centers for Medicare and Medicaid Services.Medicare Advantage and Medicare prescription drug programs to remain stable as CMS implements improvements to the programs in 2025.

Centers for Medicare and Medicaid Services.Contract year 2025 Medicare Advantage and Part D final rule (CMS-4205-F).

Centers for Medicare and Medicaid Services.Guiding an Improved Dementia Experience model.

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