Medicare annual enrollment is underway through Dec. 7, and millions of individuals may find picking a plan is much harder this year than in the past. 

For the first time, out-of-pocket prescription drug costs will be capped annually at $2,000 and all enrollees will have the option to pay those costs in the form of capped monthly installment payments instead of all at once at the pharmacy. These are positives for consumers, particularly for those who reach the cap.  AARP estimates in 2025, 3.2 million Americans, or 8.4% of all those with a Part D drug plan will reach the cap. 

But to pay for the changes, insurers are modifying their offerings, which could result in fewer benefits or that could cost individuals more money. 

Some insurers are cutting plans, exiting certain “unprofitable” markets, trimming popular offerings like dental coverage and increasing charges such as deductibles, premiums or co-payments that all Medicare enrollees pay. 

As of mid-October 2024, the Centers for Medicare and Medicaid Services (CMS) have not yet finalized the 2025 Medicare Part B premium and deductible. However, some projections are available: 

Part B premium: The 2025 premium is projected to be $185 per month, up from $174.70 in 2024. 

Part B deductible: The 2025 deductible is projected to be $257, up from $240 in 2024.