Average monthly Medicare Part D premiums jump 24%

Average monthly Medicare Part D premiums rose 24% year-over-year, rising from $29 in 2024 to $36 for 2025 coverage, according to data from eHealth. Medicare Advantage beneficiaries also face higher costs in 2025, but in the form of higher deductibles.

Health insurance marketplace eHealth analyzed more than 250,000 applications that it received for 2025 coverage during the annual enrollment period to inform its analysis.

"Due to regulatory and market pressures, it was widely expected to be a disruptive [annual enrollment period], and eHealth's retrospective analysis bears that out," the company's report stated.

The Medicare Part D premium increase was the highest eHealth had ever recorded in its eight years of tracking Part D plan premiums.

While Medicare Part D premiums rose, Medicare Advantage monthly premiums went down, from $9 to $5 per month. eHealth credited this reduction with the cost-conscious population of Medicare Advantage beneficiaries, who might be more likely to enroll in plans with zero-dollar premiums.

However, cost burdens for Medicare Advantage beneficiaries are apparent when examining deductibles. The average deductible for Medicare Advantage plans during the annual enrollment period was $315, compared to just $132 in 2024 -- an increase of 139%.

"The Annual Enrollment Period for 2026 coverage is still months away," eHealth noted.

The company predicted that changes in the regulatory environment and the outcome of certain court cases could alter the final premiums and cost-sharing numbers.

"Our analysis confirms that many Medicare beneficiaries are paying higher out-of-pocket costs for their coverage this year than they were in 2024," said eHealth CEO Fran Soistman.

"We believe these trends reflect consecutive years of insufficient rate increases from CMS to keep up with medical cost inflation and increases in utilization following the COVID pandemic. At eHealth we continue to advocate for consumers, to speak up on their behalf, and to help them navigate their coverage options to find the best option for their needs and budget."

Jill McKeon has covered healthcare cybersecurity and privacy news since 2021.