The Centers for Medicare and Medicaid Services (CMS) received 2025 plan proposals from insurance companies in June and July 2024. The proposals reflected changes required by the Inflation Reduction Act, including a $2,000 cap on drug expenses for Medicare beneficiaries. Initial projections indicated that the national average premium for a Medicare Part D drug plan could rise to $179 per month, compared to the 2024 average of $35.
To address these anticipated increases, the current administration raised the government subsidy provided to insurance companies from $29.58 per member per month in 2024 to $142.67 in 2025. According to the announcement, “This has worked to some degree to soften the premium increased on Part D Prescription drug plans for 2025.”
In Colorado, Aetna consolidated its offerings into one Part D plan with a monthly premium of $55 for 2025, up from $19 this year. Most carriers have also increased premiums on their stand-alone prescription drug plans.
Changes are also evident in Medicare Advantage plans. There have been increases in maximum out-of-pocket costs and co-pays, while ancillary benefits such as dental, vision, hearing, and over-the-counter coverage have decreased due to requirements under the Inflation Reduction Act. These adjustments affect all carriers as they work to balance maintaining benefits with covering higher costs next year.
