Medicare and You Handbook 2025

Check out what’s new in Medicare this year to help you manage your overall health and wellness.

Lowering your prescription drug costs

Because of President Biden’s new prescription drug law, in 2025, your yearly out-of-pocket drug costs will be capped at $2,000. If you have Medicare drug coverage (Part D) and your drug costs are high enough to reach this cap, you don’t have to pay a copayment or coinsurance for Part D drugs for the rest of the calendar year. Starting in 2025, you’ll also have the option of spreading your drug costs across monthly payments throughout the year. Go to page 83.

Managing your mental health and wellbeing

Medicare covers expanded mental health care, like intensive outpatient program services in certain locations and services from marriage and family therapists and mental health counselors (page 46). During your yearly “Wellness” visit, your health care provider can also use a health risk assessment to better understand your social needs and refer you for appropriate services and support (page 55).

More resources for caregivers

Medicare covers additional caregiver support, like training that helps your caregiver better care for you (page 33) and relief when they’re caring for family members in hospice care (page 27). Also, some people living with dementia and their caregivers may be able to get more support though a new pilot program (page 35).

Postal Service Health Benefits Program

Starting January 1, 2025, U.S. Postal Service employees, retirees and their families will get coverage through a new benefits program instead of through the Federal Employee Health Benefits program. Go to page 89.

Changes to telehealth coverage

You can get telehealth services at any location in the U.S., including your home, through December 31, 2024. After this period, you must be in an office or medical facility located in a rural area for most telehealth services. However, you can still get certain telehealth services (like for mental and behavioral health) in your home no matter where you live. Go to page 51

Download Medicare and You Handbook 2025 here.