Medicare Advantage and Part D Plan Enrollees are Paying More This Year
- Medicare Part D plan enrollees are paying premiums 24% higher in 2025 than in 2024
- Deductibles for Medicare Advantage plans have more than doubled
Those are the highlights from eHealth’s new analysis of costs and plan selection trends from last fall’s Annual Enrollment Period (AEP).
A Disruptive Annual Enrollment Period
Between October 15 and December 7, 2024, millions of Medicare beneficiaries reviewed their coverage options and selected new Medicare plans for the 2025 calendar year. Due to regulatory and market pressures, it was widely expected to be a disruptive AEP, and eHealth’s retrospective analysis bears that out.
Part D Plan Premiums are Way Up
The average monthly premium for Part D plans selected by Medicare beneficiaries at eHealth has increased 24% year over year, from $29 for 2024 coverage to $36 for 2025 coverage. In eight years of tracking average Part D plan premiums, this is the highest Part D premium eHealth has ever recorded.
Medicare Advantage Highs and Lows
Beneficiaries selecting Medicare Advantage plans at eHealth during AEP met cost hurdles too. While the overall average monthly premium for Medicare Advantage plans went down (from $9 per month to $5 per month), this was largely because cost-conscious beneficiaries were more likely to enroll in plans with zero-dollar premiums (87% last AEP compared to 84% the year before).
But that doesn’t mean Medicare Advantage beneficiaries aren’t facing higher costs. The cost burden reveals itself when you examine the average deductible for Medicare Advantage plans during AEP: $315, compared to $132* the year before. That’s an increase of 139%.
An Uncertain Prospect for Beneficiaries
The Annual Enrollment Period for 2026 coverage is still months away. Changes in the federal regulatory environment and the outcome of certain court cases may play a role in determining final premiums and cost-sharing figures. Typically, it requires a year or more for costs to catch up with rule changes.
In the meantime, cost-sensitive seniors and other Medicare beneficiaries are understandably concerned. As a nationally licensed health insurance agency serving Medicare enrollees, eHealth will continue to watch market trends and advocate for access to affordable healthcare for all Medicare beneficiaries.
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Notes
* This figure represents an upward correction to the figure eHealth reported in last year’s Medicare Index Report.
Methodology
Findings presented in eHealth’s analysis are based on submitted applications for Medicare insurance products received by eHealth during the Annual Enrollment Period (AEP) for 2025 coverage, which occurred between October 15 and December 7, 2024. More than 250,000 submitted applications were included in the analysis for 2025 coverage. Historical data is reproduced from reports previously published by eHealth.
For the purposes of this analysis, “Medicare Advantage” plans include both those that offer prescription drug coverage and those that do not. Only data generated by eHealth customers during the specified period was considered in this report. Dollar values are rounded to the nearest full dollar.
Although eHealth offers many Medicare insurance products from a number of insurance companies, eHealth does not offer all products available to consumers and the products available through eHealth may vary over time and by region.
No information relevant to eHealth financial performance should be drawn from this report. Like other insurance brokers, eHealth is compensated on a fixed per-member basis for Medicare Advantage and Part D plans, as regulated by the Centers for Medicare and Medicaid Services, and on a percentage of premium basis for most Medicare Supplement plans.