Medicare Advantage Premiums Drop for 2025: What to Know

More than half of all Medicare recipients are now enrolled in Medicare Advantage plans — and in 2025, they’re seeing a small but welcome break. The average monthly premium is dropping slightly, even as enrollment continues to surge.

According to the Centers for Medicare and Medicaid Services (CMS), the average Medicare Advantage premium will fall by $1.23 per month in 2025. Enrollment is projected to reach 35.7 million people, making up 51% of the total Medicare population.

Why Are Premiums Going Down?

Elderly man reviewing Medicare Advantage enrollment documents at his kitchen counter, symbolizing 2025 coverage decisions.

CMS says the premium drop is the result of efficiency improvements and competitive pricing among insurers. Despite early concerns from providers about funding adjustments, most plans will maintain their current benefit levels.

“Beneficiaries can expect continued access to affordable, high-quality Medicare Advantage coverage in 2025,” CMS said in a press release.

Plans will continue to offer extra benefits not available under traditional Medicare — including dental, vision, hearing, transportation, and gym memberships.

What Else Is Changing?

Although average costs are going down, CMS says plan options will vary significantly by location. Beneficiaries are encouraged to compare coverage and re-evaluate their plan choices during the open enrollment period later this year.

Key points for 2025:

Many plans will offer zero-dollar premiums or reduced drug costs
Insurers are continuing to expand supplemental benefit options
CMS has added stricter requirements for plan transparency and network adequacy

How to Compare Plans for 2025

Whether you’re new to Medicare Advantage or want to switch plans, CMS recommends using the Medicare Plan Finder tool at medicare.gov when the open enrollment period begins.

You’ll be able to compare:

Premiums
Deductibles and out-of-pocket limits
Drug coverage
Supplemental benefits
Provider network participation

If you don’t actively choose a plan, you’ll stay enrolled in your current one if it’s still available.

Final Thoughts

With premiums falling slightly and enrollment hitting new highs, Medicare Advantage continues to grow as a preferred option for millions of older Americans. Beneficiaries should take the time this fall to explore their coverage choices — and ensure they’re getting the best deal for their needs in 2025.

Want to check out more from FL1? Check out these related topics!

Stay informed. For the latest breaking news and headlines from across the FL1 National Desk subscribe using the Google pop-up prompt or download the FingerLakes1.com App!

Digital Team

This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.