marketing
November 18, 2024
CMS Releases 2025 Medicare Premium and Deductible Updates
Sacramento, Ca- CMS has released the 2025 Medicare premium and deductible adjustments, along with significant changes resulting from the Inflation Reduction Act. These changes include an increase in premiums, caps on out-of-pocket drug expenses, and expanded eligibility for financial assistance. CAHIP-NorCal is sharing this information to help brokers and their clients stay updated on the ever-changing Medicare landscape and better understand how these updates may impact Medicare coverage in the coming year.
With the premium increases and plan terminations happening frequently, CAHIP-Norcal encourages all Medicare beneficiaries to work with a broker who specializes in senior health benefits so that you can feel confident in your health coverage and avoid coverage gaps, or unexpected cost increases.
At a Glance: 2025 Costs:
- Part A (Hospital Insurance):
- Inpatient hospital deductible: $1,632 (+$32 from 2024)
- Daily coinsurance (61st–90th day): $408 (+$8)
- Daily coinsurance (lifetime reserve days): $816 (+$16)
- Part B (Medical Insurance):
- Monthly premium: $174.70 (+$9.80)
- Annual deductible: $266 (+$14)
- IRMAA (Income-Related Monthly Adjustment Amounts):
- Premiums range from $243.10 to $594.00, based on income levels.
New for 2025
- Under the Inflation Reduction Act, beneficiaries will see capped out-of-pocket costs for Part D prescription drugs, with a maximum annual limit of $2,000 starting in 2025.
- Expanded Low-Income Subsidy: The Extra Help program is broadened to offer full benefits to individuals with incomes up to 150% of the federal poverty level.
- Price Negotiations: Medicare will implement negotiated prices for certain high-cost prescription drugs.
For full details, visit the CMS announcement here.
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For over 30 years, SAHU has worked to improve our members’ ability to meet the health, financial and retirement security needs of all Californians and Americans through education, advocacy, and professional development. For more information, please visit: sahu-ca.com.
