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Personal Finance (Not Investing) • 2025 Medicare Drug Costs - maximum ballpark budget

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In 2025, I'll be 65 and starting Medicare.

Today I read about the "donut hole" for drug costs here on the forum.

I found this on the Internet:
Thanks to the Inflation Reduction Act, in 2025 annual out-of-pocket costs will be capped at $2,000 for people with Medicare Part D. Apr 1, 2024 (cms.gov)

I would like to understand a ballpark estimate for my total prescription costs for 2025, assuming I will hit the maximum expenses. (I take many drugs every day, including two types of insulin.)

NOTE: I understand I will have separate costs for my Medicare premium as well as a supplement/Medigap. For the purposes of this thread, please help me understand what to budget for total cost for drugs only (Medicare Part D premium, co-pays, Part D private coverage premiums)

When it says that my annual out-of-pocket costs will be capped at $2,000, what does the $2,000 include:

Private insurance premium for drugs?
Medicare premium for part D?
Co-pays for part D?

(We sure don't make it easy for old folks, do we? I currently pay extremely high insurance premiums for a platinum PPO, but at least I can understand it easily.)

Statistics: Posted by LilyFleur — Tue May 21, 2024 2:01 pm — Replies 3 — Views 158



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