Important Updates

Medicare Part D Prescription Drug Changes Coming in 2025

The Centers for Medicare & Medicaid Services (CMS) recently announced a redesign that will benefit Part D drug coverage. The changes focus on lowering out-of-pocket costs, enhancing coverage, and simplifying the overall structure of Medicare Part D.

The IRA was passed in 2022 and was designed to help meet climate goals as well as to benefit many vulnerable populations — including Medicare beneficiaries. Changes to Prescription Drug Plans went into effect in 2023 with a cap of $35 on Part D covered insulin. In 2025, three more changes arrive for Medicare plans with prescription drug coverage — with notable consumer benefits.

Here’s an overview of what to expect:

More Predictable Costs:

• No more coverage gap (Donut Hole)! After reaching your deductible, you pay your 25% cost-sharing.
• Annual out-of-pocket costs will be capped at $2,000, providing a more manageable financial outlook
• Excludes Part B covered Drugs
• This will especially benefit those with high-cost medications who don’t qualify for the Extra Help Program