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The Inflation Reduction Act (IRA) Brings Big Changes to Medicare

medicare enhancements in 2025

The Inflation Reduction Act (IRA) was passed in 2022 and was designed to help meet climate goals as well as to benefit many vulnerable populations — including Medicare beneficiaries. Changes to Prescription Drug Plans went into effect in 2023 with a cap of $35 on Part D covered insulin. In 2025, three more changes arrive for Medicare plans with prescription drug coverage — with notable consumer benefits

Maximum annual out-of-pocket cost capped at $2,000

• After reaching your deductible, you pay your 25% cost-sharing • When you reach $2,000 out of pocket, you pay $0 for prescription drugs for the rest of the year • Excludes drugs covered by Part B

No more “donut hole” coverage gap phase

• Now there is only the deductible, initial coverage phase and catastrophic (after you reach maximum out of pocket)

Spread out your prescription drug costs over the year

This can smooth your costs, helping you to budget • Example: You have one prescription that costs $300 every three months. You now have the option to pay $100 per month – the same $1,200 over a year.

*Source: https://www.medicare.gov/about-us/prescription-drug-law “Saving money with the prescription drug law”

We do not offer every plan available in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health
Insurance Program (SHIP) to get information on all of your options.