This can damage your wallet

Cost	2024	2025	Difference
Average monthly Medicare Advantage premium	$18.23	$17.00	-$1.23 (-6.75%)

Medicare open enrollment begins October 15 and runs through December 7, 2024. During this time, any Medicare enrollee can switch from Original Medicare to a private Medicare Advantage plan (or vice versa), switch between Medicare Advantage plans, or Enroll in or switch between Medicare Part D prescription drug plans. Changes will come into effect on January 1, 2025.

The numbers in the table above are based on projections CMS received from Medicare Advantage providers and are weighted by enrollment numbers. So if you have a less popular plan, your premium may be very different. For example, using 2024 CMS data, our calculations show that the monthly average for all Medicare Advantage premiums in 2024 was $23.05.

The CMS also said the number of special needs plans (SNPs) for Medicare recipients will increase by 9% next year, with SNPs making up about a quarter of all Medicare Advantage plans. Special needs plans provide additional benefits for people with certain chronic illnesses or disabilities, those enrolled in both Medicare and Medicaid, or those living in certain facilities. An additional 7.2 million people are expected to enroll in these plans in 2025.

The average Plan D premium is also expected to decline

The average monthly cost for standalone Part D plans is also expected to decline to $46.50 in 2025, a decrease of $7.45, or 13.8%, from $53.95 in the year 2024 corresponds. These figures do not include those who do not pay premiums due to the Extra Help program.

CMS says premiums will be even lower on average for people who get prescription drug coverage through Medicare Advantage. Premiums are expected to decrease to $13.50 in 2025, a decrease of $2.06 (13.2%) from $15.56 in 2024.

In 2025, there will be a new limit of $2,000 on the amount you must pay out of pocket for Part D. Although this could ultimately lead to insurers raising their premiums, most providers currently participate in a voluntary premium stabilization plan, under which the government pays them a subsidy to limit rate increases. The CMS said 99% of people now enrolled in a standalone Part D plan are with companies that have opted into that program.

What the changes in 2025 mean for you

These numbers can help you plan for upcoming changes to your insurance coverage and give you a general idea of ​​what average Medicare Advantage costs will be in 2025. If you are already enrolled in an MA plan, be sure to read your annual change notice, which you may have already received in the mail. This letter will provide you with details of your specific coverage and costs, which will come into effect in January.

You have the option to switch to a different plan if you want to start starting October 15th, when open enrollment for Medicare begins, and again during open enrollment for Medicare Advantage, which runs from January 1st to March 31st running.

If you haven’t signed up for Medicare Advantage yet but are thinking about it, you can use this average cost as a benchmark for any plans you’re considering. Detailed plan information should be available on the Medicare.gov website by October 1st. Learn how to choose a Medicare plan or call 1-800-MEDICARE once open enrollment begins for more information and assistance.