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2025 Medicare Updates: Essential Info Every Retiree Must Know

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5 Medicare changes for 2025 every retiree should know

With the arrival of a new year, many find themselves adjusting to changes in their health insurance plans, which often include alterations in benefits and costs. For those on Medicare, this is no exception, as Original Medicare updates its cost structure and coverage options every year. These changes can influence both your expenses and your decisions regarding additional insurance coverage.

It’s best if you reviewed these updates during the annual enrollment period, which took place from October 15 to December 7, 2024. However, if you missed that window, here are some key changes in 2025 that you should be aware of.

1. Increased Costs for Parts A and B

The premiums and deductibles for Original Medicare have seen a rise in 2025. The annual deductible for Part A has climbed from $1,632 to $1,676, while the annual deductible for Part B has increased from $240 to $257.

While most elderly individuals do not pay a premium for Part A, they do pay for Part B. The standard monthly premium for Part B has increased from $174.70 in 2024 to $185.00 in 2025. Additionally, higher-income individuals may face premiums up to $628.90 per month for Part B coverage. It’s important to remember that both parts include copays, potentially adding to your out-of-pocket expenses.

2. $2,000 Limit on Out-of-Pocket Prescription Drug Expenses

In a move welcomed by many, President Joe Biden enacted a law that caps out-of-pocket prescription drug expenses at $2,000 annually for those enrolled in Medicare Part D plans. This cap includes both your personal spending on medications and any contributions made on your behalf, such as those from Medicare’s Extra Help program.

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Once this $2,000 threshold is reached within the year, you won’t have to pay any more copays for medications covered under your Medicare Part D plan for the remainder of 2025.

3. Limited Access to Telehealth Services

In 2024, Medicare beneficiaries could use telehealth services from any location. However, starting in 2025, these services are generally only accessible from an office or medical facility in a rural area, with several exceptions.

Exceptions where telehealth can still be accessed from any location include:

  • Monthly End-Stage Renal Disease (ESRD) visits for home dialysis
  • Services related to acute stroke symptoms
  • Treatment or diagnosis of substance use disorders or mental health conditions
  • Behavioral health services
  • Diabetes self-management training
  • Medical nutrition therapy

For these services, you can continue to use telehealth from anywhere, including your home.

4. Additional Support for Caregivers

Starting in 2025, Medicare will cover training costs for caregivers, provided a healthcare professional deems it necessary. This coverage includes both individual and group training sessions, and you do not need to be present. These training sessions must focus on skills that your caregiver needs to assist you, and they are subject to the Part B deductible and the usual 20% copay.

5. A New Plan for Postal Service Employees and Retirees

Beginning January 1, current and former employees of the U.S. Postal Service are no longer covered under the Federal Employee Health Benefits Program. Instead, they have been transitioned to the new Postal Service Health Benefits Program.

Impacted individuals should have received a new insurance card and details about the coverage provided by this new program. If you have questions, especially about how this new program coordinates with Medicare, you should contact your plan provider.

While these updates may not affect everyone immediately, they are important to consider for future healthcare planning. If you have any doubts about coverage for treatments or medications, you should consult your plan documents or speak with someone from the Centers for Medicare & Medicaid Services for more information.

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