Annual Cap on
Out-of-Pocket Payments

Starting in 2025, if you are enrolled in a Medicare Part D plan, you will pay no more than $2,000 out-of-pocket costs for prescription drugs. This $2,000 annual cap on out-of-pocket payments in 2025 is a decrease from the $3,250 out-of-pocket spending threshold in 2024. There will be no cost for Part D drugs once you reach the $2,000 out-of-pocket threshold in 2025.

New Medicare
Prescription Payment Plan

If you are enrolled in a Medicare Part D or Medicare Advantage plan, you will be eligible to opt in to a new voluntary program that will allow you to evenly distribute or smooth out-of-pocket prescription drug costs in predictable monthly installments payable to your Medicare Part D plan. To take part in this payment plan, you will need to opt in through your Medicare Part D plan directly. Here are some other helpful tips about the program:

• The Medicare Prescription Payment Plan will not lower out-of-pocket costs, but will help spread existing costs evenly throughout the plan year
• Medicare Prescription Payment Plan participants will pay $0 at the pharmacy for Medicare Part D–covered drugs; instead, they will pay their Medicare Part D plan directly
• Monthly bills will not be sent until the Medicare Prescription Payment Plan participant incurs out-of-pocket costs

Potential Increased
Monthly Premiums

Premiums for Medicare Part D and Medicare Advantage plans may increase in 2025. If you are enrolled in Medicare Part D, review your plan during Medicare’s Open Enrollment period to better understand your premium, coverage, and out-of-pocket costs. Open Enrollment for 2025 occurs from October 15, 2024, to December 7, 2024.