Medicare announces key changes for 2025 affecting coverage and costs for seniors

Significant changes to Medicare will take effect in 2025, impacting coverage and costs for many older Americans. There will be 7% fewer plan options, which may lead to narrower provider networks and higher out-of-pocket expenses, despite comprehensive coverage remaining. A key update is the elimination of the Medicare Part D "donut hole," capping annual drug costs at $2,000, down from $8,000. While Part D premiums will increase slightly to $36.78, the reduction in out-of-pocket drug expenses is expected to benefit many beneficiaries. Medicare will also expand mental health coverage, including counseling and support for caregivers. This aims to address rising mental health needs and provide resources for seniors, particularly those with dementia, to help them age in place.