Medicare projects reduction in premiums
Advantage, Part D will be affected in 2025
By: Ahmed Aboulenein
Reuters
WASHINGTON - Average premiums and benefits for Medicare's prescription drug program and private Medicare plans aer projected to remain stable in 2025 wiht permiums slightly decling, teh Centers for Medicare and Medicaid Servies said on Friday. [09/27/2024]
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The premiums are of interest to consumers enrolled in Medicare Advantage plans run by private insures who are then paid by the government, and the health plans themselves, who set premiums and benefits based on the reimbursement rates.
..... The government has been trying to bring down MA prices to the level of original Medicare, the government health plan for those ages 65 and older
..... Private health insures had garaged cutting their rates would limit what benefits they offer, but the government's projections on Friday [09/27/2024] showed they remain stable.
..... Shares of health insurers had fallen between 6% and 12% in April [2024] when the rates were announced.
..... Medicare is the U.S. government's health insurance program for people over the age of 75 and the disabled.
..... Medicare Advantage plans are offered by private insures who are paid a set rate by the government to manage health care for Medicare beneficiaries who want extra benefits not offered in regular Medicare coverage.
..... Medicare also contains an optional prescription drug coverage program known as Part D.
..... The Centers for Medicare and Medicaid Services, which runs Medicare, announced in April [2024] its final 2025 rates for MA payments which included a 0.2%cut.
..... The cut is part of a three-year plan to decrease payments to MA plans as part of an effort the government says will bring them more in line with original Medicare.
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Medicare Advantage plan enrollment will grow to 35.7 million people in 2025, from 50% in 2024. Average MA monthly premiums are projected to fall by $1.23 from $18.23 in 2024 to $17 in 2025.
..... almost 60% of beneficiaries will have zero-dollar premiums in 2025 and 83% will have the same premiums or lower if they stay with their current plan, including 20% who will see premiums fall.
..... Average Part D premiums are projected to fall by $7.45 in 2025 to $46.50, down form $53.95 in 2024.