Lower Premiums and More Choices
CMS recently released its update on Medicare Advantage and Medicare Prescription Drug Programs. Medicare Advantage enrollment has surged over the past two decades, driven by policies promoting independent plan options.
As of 2024, 32.8 million people—54% of eligible beneficiaries—are enrolled in Medicare Advantage.
Here’s what you need to know about CMS 2025 Medicare Advantage and Medicare Prescription Drug Programs Update:
- Decreased Premiums: Average Medicare Advantage premiums are expected to drop from $18.23 to $17.00; about 60% of enrollees will have a zero-dollar premium.
- Ample Plan Choices: Nearly 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan; 98% will have access to ten or more plans.
- Stable Supplemental Benefits: 99% of Medicare Advantage plans will offer vision, 97% hearing, and 97% dental benefits; rebates are projected to remain stable.
- Increased Special Needs Plans (SNPs): SNP offerings will grow by 9%, with projected enrollment at 7.2 million, or 28% of Medicare Advantage enrollment.
- Lower Average Part D Premiums: The average total Part D premium is expected to decrease from $53.95 to $46.50; the average MA plan Part D premium is projected to drop to $13.50.
- Diverse Part D Options: Beneficiaries will have access to an average of 15 stand-alone Part D plans per region and 34 MA plans with drug coverage per county.
- Enhanced Drug Coverage: No significant changes in Part D formularies; the Inflation Reduction Act will cap annual out-of-pocket spending at $2,000 starting in 2025.
By 2030, KFF predicts MA is expected to dominate Medicare enrollment.
