The annual enrollment period for Medicare, commonly known as the “Red, White, and Blue Card,” began on October 15 and will run until December 7. During this period, any Medicare plans selected will take effect on January 1, 2025.
To help the public navigate the significant changes coming to Medicare in 2025, UnitedHealthcare is breaking down the key updates, ensuring you understand and can choose the best plan for the upcoming year.
Here are three crucial changes to watch out for in 2025 that will impact all standalone Medicare Part D prescription drug plans as well as Medicare Advantage plans that include drug coverage:
**Change 1: Elimination of the Coverage Gap**
In 2025, Medicare Part D will feature three distinct coverage phases:
– **Annual Deductible Phase**: If a plan has a deductible for prescription drugs, members must cover the entire cost of their medications until they reach that deductible amount.
– **Initial Coverage Phase**: During this phase, members will pay either a copayment or coinsurance for their prescriptions.
– **Catastrophic Coverage Phase**: Once a member’s total out-of-pocket costs for covered medications reach $2,000 (including the deductible), they will enter the catastrophic coverage phase, where they will pay $0 for covered prescription drugs for the remainder of the plan year.
**Change 2: Reduction of the Out-of-Pocket Maximum for Part D**
In 2024, the out-of-pocket maximum for Part D prescription drugs across all Medicare plans is set at $8,000. However, in 2025, this maximum will be lowered to the lowest level ever. After a member and their representative pay a total of $2,000, the member will not have to pay any copayments or coinsurance for covered Part D prescriptions for the rest of the plan year. Although this change aims to reduce prescription drug costs, it could result in higher deductibles or premiums for 2025.
**Change 3: Introduction of a New Prescription Payment Plan**
A new optional plan will be available in 2025: the Medicare Prescription Payment Plan. This plan will allow beneficiaries to spread their out-of-pocket costs throughout the year rather than paying all at once at the pharmacy when picking up their prescriptions. Members can manage their costs through monthly billing.
For more information about the Medicare annual enrollment period, please contact UnitedHealthcare’s Chinese language hotline at 1-800-801-1900 or visit a local UnitedHealthcare Asian Information Center.
Locations include:
– 161 Kenmare St, Manhattan (Chinatown)
– 35 E. Broadway, Manhattan (Chinatown)
– 136-02 Roosevelt Ave, Flushing
– 3752 82nd St, Jackson Heights
– Room G101, 6402 8th Avenue, Brooklyn
– 2343 86th St, Brooklyn
– 350 Broad Ave, Palisades Park, NJ
– 1715 Rt. 27, Edison, NJ
UnitedHealthcare has been serving the Asian community for 30 years, understanding your needs and offering reliable Medicare plans. For more information, visit www.uhcAsian.com.
