Even though the 2025 increases for Medicare Part B coverage have not been officially announced by the CMS, reliable sources have estimated what we can expect next year.
Federal Workers & Medicare
Since most federal workers have Medicare taxes deducted from their paychecks, Medicare Part A (inpatient hospital care) is premium free. This is why the OPM advises active and retired federal employees to sign up for Part A when they become eligible at age 65. Why? Because Part A can help cover any hospital-related costs your FEHB plan doesn’t cover. However, since Part B (physicians and outpatient services) requires paying a monthly premium, it’s important to understand how it works with your FEHB plan before you enroll.
Estimated Cost Of 2025 Part B Premiums
Starting in 2025, Medicare Part B premiums are estimated to increase to $185, which is an increase of $10.30 over premiums in 2024 ($174.70). The annual deductible for Part B is estimated to be $257 in 2025, up from $240 in 2024. For Part B enrollees collecting Social Security, premiums are usually deducted from their monthly benefit.
Even though Medicare Part A is premium-free for those who have paid into the system, there is a deductible. For 2025, the Part A deductible is estimated to rise to $1,684 which is $52 more than the 2024 deductible ($1,632).
“Even better — the Part D donut hole is being completely eliminated starting in January 2025.”
2025 Changes To Medicare Part D Prescription Coverage
As a result of The Inflation Reduction Act being signed into law, Part D out-of-pocket costs will be capped at $2,000 per year for covered drugs. Enrollees will also have the option to spread their drug costs across equal payments throughout the year. Even better, the Part D donut hole will be completely eliminated starting in January 2025. As for the Part D deductible, it’s estimated to increase to $590 in 2025, which is $45 more than the 2024 deductible ($545). The Inflation Reduction Act also ensures that Part D enrollees will continue to get free vaccines, and co-pays on insulin will still be capped at $35 per month.
The Coordination of FEHB & Medicare Coverage
During your working years, FEHB is considered your primary insurer, and Medicare Parts A and B serve as your secondary insurer. In retirement, the roles switch, Parts A and B become your primary insurance, and FEHB becomes your secondary insurance, much like a Medigap plan. This can help decrease out-of-pocket costs if your FEHB plan waives copayments or deductibles for services covered by Medicare.
To learn more, meet with an FRC® trained advisor who understands your unique federal benefits.
