Medicare costs for the average American differ depending on the circumstances of individual beneficiaries and specific parts of the State health insurance are enrolled.
For hospital insurance, under Medicare Part A, most people do not have to pay a premium if they paid Medicare taxes while working. But there may be deductibles associated with hospital stays.
From Retirement Daily: Those 50-cent Medicare Part D premiums are gone by 2025
Medicare Part B covers the costs of preventive and outpatient health care. In 2024, the standard monthly premium is $164.90. However, depending on the recipient's income, it may be higher.
There is also a deductible: $226 a year. After payment, Medicare members typically pay 20% of the total amount for most services.
Private health insurance companies also provide coverage for Medicare Part C, also known as Medicare Advantage. These costs vary and include monthly premiums, deductibles, and copays.
But it is Medicare Part D (the cost of prescription drugs) that will cause premiums to increase by significant amounts in eight states by 2025.
Related: Medicare Changes Will Hit Your Wallet in 2025
Medicare Part D premiums will increase in eight states
Medicare beneficiaries living in Alaska, California, Connecticut, Massachusetts, New Jersey, New York, Rhode Island and Vermont have been paying low premiums for prescription drugs, often as little as $0.50 per month, or $6 annually in 2024.
Premium prices are expected to increase by significant amounts in 2025. The lowest-cost Part D plan using only generic prescriptions is Wellcare Value Script, offered by insurer Centene. (CNC) .
Annually, Part D premiums for Wellcare Value Script in these states will increase by more than 500% and, in many cases, significantly more.
More about Medicare:
- Medicare changes will hit your wallet in 2025
- Human affected by worrying change in Medicare Advantage
- Medicare Open Enrollment Period: What You Need to Know
Here's a look at the cost increases for Wellcare Value Script, assuming two generic blood pressure medications, in each of these states:
Alaska: The total annual premium for 2024 was $42. In 2025, it will be $267.60, an increase of 537%.
California: The total annual premium for 2024 was $4.80. In 2025, it will be $208.80, an increase of 4,250%.
Connecticut: The total annual premium for 2024 was $6. In 2025, it will be $148.80, an increase of 2,380%.
Massachusetts: The total annual premium for 2024 was $6. In 2025, it will be $148.80, an increase of 2,380%.
New Jersey: The total annual premium for 2024 was $0. In 2025, it will be $27.60.
New York: The total annual premium for 2024 was $44.40. In 2025, it will be $464.40, an increase of 946%.
Rhode Island: The total annual premium for 2024 was $6. In 2025, it will be $148.80, an increase of 2,380%.
Vermont: The total annual premium for 2024 was $6. In 2025, it will be $148.80, an increase of 2,380%.
Shutterstock
Good Medicare Part D news for other states
In the other 42 states, Wellcare Value Script will offer a $0 premium, assuming your prescriptions qualify. Remember that the examples above are for two generic blood pressure medications.
Medicare beneficiaries who want to review their own costs can visit Medicare.gov to explore Part D pricing for 2025.
Marcia Mantell, founder and president of Mantell Retirement Consulting, Inc.suggests doing this research, comparing what you find to what you'll pay in 2024, and sending the results to your elected representatives in Congress.
“Taking care of so many minutiae as a retiree is beyond crazy,” he wrote. “Only Congress can change this madness. Encourage them to get to work.”
Related: The 10 Best Investment Books, According to Our stock market Professionals
