Medicare Part D Updates - 2025

Medicare Part D plans, which cover prescription drugs, will have a maximum out-of-pocket cost of $2,000 beginning in 2025.  The $2,000 includes any plan deductible, copays and coinsurance; premiums are not included in this amount.  Should someone reach $2,000 in out-of-pocket costs, the Part D plan will cover the costs of their medications in full for the remainder of the calendar year. 

Another significant change in Part D cost sharing is the new Medicare Prescription Payment Plan (MPPP). MPPP allows people to spread out their Part D cost sharing over 12 months; previously, beneficiaries may have had to pay a lot of money at the beginning of the calendar year, until they reached their deductible.  Beneficiaries wishing to enroll in MPPP should enroll through their Part D insurer (standalone plan that works with Original Medicare, or Medicare Advantage plan).  Rather than paying copays at the pharmacy, those enrolled in MPPP will pay their insurer in equal monthly payments.

For more information on the MPPP, visit this link.