The Average Cost Of Medicare Part D For Retirees In 2025

Open enrollment for Medicare is time-sensitive, allowing you to enroll or switch plans only from October 15 to December 7 each year. This means it's vital for retirees in 2025 to understand their Medicare coverage options so they can make an informed decision before either enrolling in Medicare or selecting a new plan. Part of your decision-making paradigm will include choosing whether you want Medicare Part D as part of your coverage.

Medicare Part D is optional coverage that can help reduce the out-of-pocket costs of prescription drugs, but it's not part of Original Medicare, which only includes Part A and Part B. You can include Part D coverage in your Medicare Advantage plan or opt for it as stand-alone coverage from a licensed provider. Because Medicare Part D is only offered through private insurance companies, the cost of your plan will vary depending on several factors, including the drug tier and your income.

Every insurance provider sets its own rates for the coverage it provides, but the average cost of Medicare Part D for retirees in 2025 is estimated at $46.50, according to the Centers for Medicare and Medicaid Services. Of course, there's a lot to know about prescription drug coverage for retirees, and understanding what is and isn't covered by Medicare ensures you get the coverage you need at a price that fits your budget.

Whether you're new to Medicare in 2025 or already enrolled, there are changes to the program you need to be aware of. For instance, a new cap on out-of-pocket costs for prescription drugs of $2,000 was implemented. This means once you've spent $2,000 on your covered prescription drugs, you won't be charged for any covered prescriptions for the remainder of the year.

Retirees also have the option to participate in the Medicare Prescription Payment Plan, which lets you spread the cost of your prescription drugs out over the course of the year. Instead of paying pharmacies up front for your prescriptions, you could pay monthly for the costs incurred by your Part D plan provider.

Compared to 2024, the number of both stand-alone Part D plans and Medicare Advantage plans offering Part D coverage has dropped. This may not be a bad thing, as the average cost of a Part D plan on its own is higher than similar coverage from a Medicare Advantage plan. According to the Kaiser Family Foundation's analysis of data from Centers for Medicare & Medicaid Services, you'll pay an estimated $45 for stand-alone Part D coverage, but that premium goes down to just $7 when bundled with a Medicare Advantage plan. As 2025 comes to a close, Medicare Advantage plan options are decreasing even further in 2026, so consult your insurance provider to learn more about your future Part D coverage options.