The arrival of a new year frequently brings changes to health insurance plans, affecting benefits and costs. This is true for those enrolled in Medicare as well. Each year, Original Medicare’s costs and coverage details are revised, influencing your payment amounts and the type of supplementary insurance you may opt for.

Ideally, you should have reviewed these modifications during the annual enrollment phase, which lasted from October 15, 2024, to December 7, 2024. If you missed it, here are the key updates you should be aware of as we progress through 2025.

1. Increases in Costs for Parts A and B

In 2025, the premiums and deductibles for Original Medicare saw a rise. Specifically, the annual deductible for Part A increased from $1,632 to $1,676, while the annual deductible for Part B went up from $240 to $257.

Most seniors do not pay a premium for Part A, but they do for Part B. The standard monthly premium for Part B increased from $174.70 in 2024 to $185.00 in 2025. However, some higher-income individuals might be required to pay as much as $628.90 monthly for this coverage. Remember that both components of Original Medicare also involve copays, which can further raise your expenses.

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

On a positive note, President Joe Biden has enacted legislation that caps annual out-of-pocket prescription drug costs for Medicare recipients enrolled in Part D plans at $2,000. This cap includes any amounts you spend on your medications as well as any contributions from others, such as the Medicare Extra Help program.

Once you reach this cap for the year, you will not incur any additional copays for your prescriptions for the remainder of 2025. This limit only applies to medications covered under your Medicare Part D plan.

3. Reduced Access to Telehealth Services

In 2024, seniors on Medicare were able to access telehealth services from any location. However, starting in 2025, you’ll typically need to be in a medical facility located in a rural area to use most telehealth services.

Certain exceptions allow the following services to be available from any location:

• Monthly visits for home dialysis related to End-Stage Renal Disease (ESRD)
• Diagnostic, evaluative, or treatment services for acute stroke symptoms
• Services for substance use disorders or concurrent mental health disorders, including diagnostic, evaluative, or treatment services for mental health disorders
• Behavioral health services
• Training for diabetes self-management
• Medical nutrition counseling

You will still be able to access telehealth services for these specific purposes from any location, even from your own home.

4. Increased Support for Caregivers

Starting in 2025, Medicare will cover caregiver training costs if your healthcare provider considers it necessary. Medicare will pay for either individual or group training sessions, even if you’re not present. The condition is that your treatment necessitates a caregiver and the training focuses on skills that match your requirements.

The standard Part B deductible and a 20% copay will apply to these training sessions just as they do to other Part B expenses.

5. New Program for Postal Service Employees and Retirees

As of January 1, current and former employees of the U.S. Postal Service have transitioned from the Federal Employee Health Benefits Program to a new initiative called the Postal Service Health Benefits Program.

Seniors affected by this change should have received an insurance card along with information about the new program and its coverage. If you have any inquiries regarding this, particularly how this new program interacts with Medicare benefits, you should reach out to your plan carrier.

While these changes may not resonate with you at the moment, it’s good to keep them in mind. If you have questions about whether a specific procedure or medication is covered, be sure to check your plan documents or contact the Centers for Medicare & Medicaid Services for more information.

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