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Medicare Part D coverage may cost you more in 2025. Here’s how to do it.

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Medicare Part D coverage may cost you more in 2025. Here’s how to do it.

You may have to spend more money on prescription drug coverage in the new year.

Maurie Backman
| Colorful Fool

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The hard thing about budgeting Medicare expenses There are different costs that may vary from one year to the next. Most Medicare enrollees Don’t pay premiums for Part A, which covers hospital care. However, there are premiums associated with Part B, which covers outpatient care, and Part D, which covers prescription drugs.

Standard monthly in 2025 Medicare Part B premium increases From $174.70 to $185. Those enrolled in Part A will also pay more for hospital care in the form of higher inpatient deductibles and co-insurance rates. But there are a few reasons why your Part D drug coverage could cost you more in the new year.

1. Your plan’s premiums are increasing

Medicare Part D premiums are not set in stone. So even if you decide to keep your current Part D plan, you may find you spend more money in 2025.

If that’s the case and you’ve been notified that your premium costs have increased, you may want to look into a new Part D plan while you still can. of Medicare fall semester open registration period It runs through December 7, so you still have a few more weeks to explore your drug insurance options and see if there’s a more affordable plan you can sign up for.

Medicare enrollment changes: What should be considered when choosing a 2025 plan?

2. Your prescriptions are upgraded to a higher tier

There may be reasons why you want to maintain your current situation. Medicare drug plan. But even if your premium costs don’t increase, you may have to pay more in 2025 if your medications are upgraded to a higher level.

Medicare Part D plans to separate prescriptions into different tiers. And these tiers determine the amount of money you’ll pay out of pocket for your medications.

If your prescriptions are heading higher for 2025, you have a few options. First, you can try finding a different plan that will classify your medications more appropriately. Or you may see if it’s possible to switch to cheaper medications or if there’s a generic version of the pills you’re taking.

3. You incur additional fees because you earn higher income

The amount of money you pay for Medicare Part D coverage will depend on the plan you choose. But no matter what this plan requires, if you have a higher income, you may be subject to a surcharge known as IRMAA, or income-related monthly adjustment amount.

Here are the income thresholds for IRMAAs in 2025:

Data source: CMS.gov. Table by author.

Remember that IRMAAs are based on your income from two years ago. In some cases, it is possible to appeal the Part D IRMAA; Therefore, it may be worth investigating whether the increase in your income a few years ago was only temporary.

When you’re retired and on a fixed income, it’s important to carefully budget for your essential expenses. Pay attention to factors that could cause your Part D costs to increase in 2025 so you can take the necessary precautions to avoid financial stress.

The Motley Fool has a feature disclosure policy.

The Motley Fool is a USA TODAY content partner providing financial news, analysis and commentary designed to help people take control of their financial lives. Content is produced independently of USA TODAY.

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