--- title: What You Actually Need to Know From the 2025 Medicare Trustees Report description: Catch up on the latest Medicare highlights with our 2025 summary, including Medicare Advantage trends, the impact of the Inflation Reduction Act, and more. image: https://blog.newhorizonsmktg.com/hubfs/NH-What-You-Actually-Need-to-Know-From-the-2025-Medicare-Trustees-Report.webp --- [![](https://cdn.prod.website-files.com/6978e65abed067e994e8d3ed/697926babf20ddeb2d4ff972_64c7ba8d78ae605d730bbe060cf878ba_NewHorizons-White-Tag.svg)](https://www.newhorizonsmktg.com/) - [Home Home](https://www.newhorizonsmktg.com/) - Agents Agents [Why Us?](https://www.newhorizonsmktg.com/why-new-horizons)[Become an Agent](https://www.newhorizonsmktg.com/become-an-agent)[Sell Your Book](https://www.newhorizonsmktg.com/sell-your-book-of-business)[Support](https://www.newhorizonsmktg.com/support)[Technology & Tools](https://www.newhorizonsmktg.com/tools-technology) Agents Agents [Why Us?](https://www.newhorizonsmktg.com/why-new-horizons)[Become an Agent](https://www.newhorizonsmktg.com/become-an-agent)[Sell Your Book](https://www.newhorizonsmktg.com/sell-your-book-of-business)[Support](https://www.newhorizonsmktg.com/support)[Technology & Tools](https://www.newhorizonsmktg.com/tools-technology) - Products Products [Medicare Supplement](https://www.newhorizonsmktg.com/products/medicare-supplements)[Medicare Advantage](https://www.newhorizonsmktg.com/products/medicare-advantage)[Life Insurance](https://www.newhorizonsmktg.com/products/life-insurance)[Final Expense](https://www.newhorizonsmktg.com/products/final-expense-insurance)[Annuities](https://www.newhorizonsmktg.com/products/annuities)[Cancer / Critical Illness Insurance](https://www.newhorizonsmktg.com/products/cancer-insurance)[Dental, Vision, Hearing Insurance](https://www.newhorizonsmktg.com/products/dental-vision-hearing-insurance)[Short-Term Care Insurance](https://www.newhorizonsmktg.com/products/short-term-recovery-care)[Long-Term Care Insurance](https://www.newhorizonsmktg.com/products/long-term-care-insurance)[Hospital Indemnity Insurance](https://www.newhorizonsmktg.com/products/hospital-indemnity-insurance)[Accident Insurance](https://www.newhorizonsmktg.com/products/accident-insurance)[Prescription Drug Plans](https://www.newhorizonsmktg.com/products/prescription-drug-plans)[All Products By Carrier](https://www.newhorizonsmktg.com/carriers) Products Products [Medicare Supplement](https://www.newhorizonsmktg.com/products/medicare-supplements)[Medicare Advantage](https://www.newhorizonsmktg.com/products/medicare-advantage)[Life Insurance](https://www.newhorizonsmktg.com/products/life-insurance)[Final Expense](https://www.newhorizonsmktg.com/products/final-expense-insurance)[Annuities](https://www.newhorizonsmktg.com/products/annuities)[Cancer / Critical Illness Insurance](https://www.newhorizonsmktg.com/products/cancer-insurance)[Dental, Vision, Hearing Insurance](https://www.newhorizonsmktg.com/products/dental-vision-hearing-insurance)[Short-Term Care Insurance](https://www.newhorizonsmktg.com/products/short-term-recovery-care)[Long-Term Care Insurance](https://www.newhorizonsmktg.com/products/long-term-care-insurance)[Hospital Indemnity Insurance](https://www.newhorizonsmktg.com/products/hospital-indemnity-insurance)[Accident Insurance](https://www.newhorizonsmktg.com/products/accident-insurance)[Prescription Drug Plans](https://www.newhorizonsmktg.com/products/prescription-drug-plans)[All Products By Carrier](https://www.newhorizonsmktg.com/carriers) - Training Training [Webinar Calendar](https://www.newhorizonsmktg.com/training/webinars)[Medicare Supplement Training Hub](https://www.newhorizonsmktg.com/training/medicare-supplement)[Medicare Advantage Training Hub](https://www.newhorizonsmktg.com/training/medicare-advantage)[Life Insurance Training Hub](https://www.newhorizonsmktg.com/training/life-insurance)[Annuity Training Hub](https://www.newhorizonsmktg.com/training/annuities)[Short-Term Care Training Hub](https://www.newhorizonsmktg.com/training/short-term-care)[Additional Training & Tips Sheets](https://www.newhorizonsmktg.com/training/additional-training) Training Training [Webinar Calendar](https://www.newhorizonsmktg.com/training/webinars)[Medicare Supplement Training Hub](https://www.newhorizonsmktg.com/training/medicare-supplement)[Medicare Advantage Training Hub](https://www.newhorizonsmktg.com/training/medicare-advantage)[Life Insurance Training Hub](https://www.newhorizonsmktg.com/training/life-insurance)[Annuity Training Hub](https://www.newhorizonsmktg.com/training/annuities)[Short-Term Care Training Hub](https://www.newhorizonsmktg.com/training/short-term-care)[Additional Training & Tips Sheets](https://www.newhorizonsmktg.com/training/additional-training) - Resources Resources [Announcements](https://www.newhorizonsmktg.com/announcements)[Blog](https://blog.newhorizonsmktg.com)[Marketing Materials](https://www.newhorizonsmktg.com/marketing-materials)[Perpetuation Planning](https://www.newhorizonsmktg.com/perpetuation-planning)[Newsletter](https://www.newhorizonsmktg.com/newsletter) Resources Resources [Announcements](https://www.newhorizonsmktg.com/announcements)[Blog](https://blog.newhorizonsmktg.com)[Marketing Materials](https://www.newhorizonsmktg.com/marketing-materials)[Perpetuation Planning](https://www.newhorizonsmktg.com/perpetuation-planning)[Newsletter](https://www.newhorizonsmktg.com/newsletter) - About About [About New Horizons](https://www.newhorizonsmktg.com/about-us)[Meet the Team](https://www.newhorizonsmktg.com/team) About About [About New Horizons](https://www.newhorizonsmktg.com/about-us)[Meet the Team](https://www.newhorizonsmktg.com/team) - [Contact Contact](https://www.newhorizonsmktg.com/contact) [Sign In Sign In](https://www.newhorizonsmktg.com/login) Jason [Agent Dashboard](https://blog.newhorizonsmktg.com/dashboard)[Account Settings](https://blog.newhorizonsmktg.com/account-settings)Sign Out July 28, 2025 · [Rebekah Parr](https://blog.newhorizonsmktg.com/author/rebekah-parr) # What You Actually Need to Know From the 2025 Medicare Trustees Report ![What You Actually Need to Know From the 2025 Medicare Trustees Report](https://blog.newhorizonsmktg.com/hubfs/NH-What-You-Actually-Need-to-Know-From-the-2025-Medicare-Trustees-Report.webp) Another year, another summary of the Medicare Trustees Report from the New Horizons team! After all, it’s a few hundred pages long, and who has time for that? Join us for all the key highlights, including the new estimated depletion date, Medicare Advantage trends, and Medicare numbers over time. *→* [Read the full, official report from CMS](https://www.cms.gov/oact/tr/2025) --- *New to the industry? Start here: *[Step-by-Step Guide to Getting Started In Medicare Sales](https://blog.newhorizonsmktg.com/step-by-step-guide-to-getting-started-in-medicare-sales) --- ## Highlights From the 2025 Medicare Trustees Report Each year, we read the report and summarize it as briefly as we can. If you're short on time and can't read this full article, here's the gist. - **Medicare Part A (the HI trust fund)** is projected to be depleted by **2033** (p. 5). At that point, it is estimated that HI revenues will cover **89%** of incurred program costs, leaving a funding gap that would require legislative action to address. - COVID-19-related adjustments have been phased out of this year’s projections, as utilization and cost patterns have normalized. - **Medicare Advantage continues to grow** – 50.5% of beneficiaries had it in 2024, and 57.8% are expected to choose MA by 2034 (p. 159). If you want a little more than that, you can read some more in-depth information from the report below. Don’t worry – we’ve translated the report into layman’s terms so you can quickly understand what’s going on. ## Inflation Reduction Act Impact The IRA has created a mixed financial picture for Medicare Part D prescription drug coverage. Starting in 2023, the law began increasing federal spending by redesigning benefits to reduce what seniors pay out-of-pocket for medications. The full changes took effect in 2025, making prescription drugs more affordable for patients but more expensive for Medicare. At the same time, a separate rule change in 2024 shifted how pharmacy discounts work. Instead of insurance companies keeping these savings behind the scenes, the discounts now reduce what patients pay at the pharmacy counter. While this helps patients immediately, it also increases overall Medicare spending. To prevent these benefit improvements from causing big premium increases for seniors, Medicare created a temporary 3-year program starting in 2025. This program keeps monthly drug plan costs manageable for patients while having Medicare pay insurance companies extra money to cover the difference. However, the IRA's money-saving features will kick in starting in 2026. The law gives Medicare new power to negotiate prescription drug prices directly with drug companies and forces companies to pay penalties if they raise prices faster than inflation. These cost-cutting measures will slowly include more medications over several years. By the end of the 10-year projection period, these savings are expected to be larger than the extra money Medicare is spending now, creating a net benefit for the program. Related: [2025 Part D Changes Every Agent Should Know](https://blog.newhorizonsmktg.com/2025-part-d-changes-every-agent-should-know) ## Healthcare Tech Is Advancing The Board explains that making projections is increasingly difficult because **healthcare technology is advancing rapidly**. From genetic breakthroughs to novel therapies, it’s nearly impossible to predict long-term costs accurately. While new innovations often drive costs up initially, they could also **improve efficiency and lower costs** in the long run. So... the bottom line is still: who knows what the future holds? ## Medicare Numbers Over Time Want to sound smart at your next Medicare trivia night? Here’s a quick comparison of Medicare stats from this year’s report versus prior years (p. 6): ### Enrollees |   | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Medicare beneficiaries | 67.6M | 66.7M | 65M | 63.8M | 62.6M | 61.2M |  59.9M | 58.4M | 56.8M | | Over age 65 | 60.3M | 59.1M | 57.1M | 55.5M | 54.1M | 52.6M | 51.2M | 49.5M | 47.8M | | Disabled | 7.3M | 7.6M | 7.9M | 8.3M | 8.5M | 8.7M |  8.8M | 8.9M | 9M | | Chose Medicare Advantage | 50.5% | 48% | 45.9% | 43% | 40% | 37.5% |  About 36% | Over 34% |  Over 32% | ### Finances |   | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Total costs | $1.122 trillion  | $1.037 trillion | $905.1 billion | $839.3 billion | $925.8 billion | $796.2 billion | $740.6 billion | $710.2 billion | $678.7 billion | | Total income | $1.133 trillion | $1.024.6 trillion | $988.6 billion | $887.6 billion | $899.9 billion | $794.8 billion | $755.7 billion | $705.1 billion | $710.2 billion | | Income from non-interest | $1.122 trillion | $1.014.6 trillion | $980.7 billion | $882.3 billion | $894.6 billion | $785.7 billion | $745.9 billion | $694.3 billion | $700.4 billion | | Income from interest | $11 billion | $10 billion | $7.9 billion | $5.3 billion | $5.3 billion | $9.1 billion | $9.8 billion | $9.8 billion | $9.8 billion | | Treasury securities holdings | $407.9 billion | $396.7 billion | $409.1 billion | $325.7 billion | $277.3 billion | $303.3 billion | $304.7 billion | $289.6 billion | $294.7 billion | ### Part B and Part D What has actually happened (p. 7): - Over the last 5 years, Part B costs have grown by 8.4% annually - Over the last 5 years, Part D costs have grown by 8.4% annually What is projected to happen over the next 5 years: - Part B costs will grow by 8.8% annually - Part D costs will grow by 7.1% annually Meanwhile, the GDP is projected to grow by only 4.2%, meaning health care costs will continue to outpace the economy. ## Medicare Advantage Medicare Advantage continues its explosive growth, with 50.5% of Medicare beneficiaries choosing MA in 2024. The Trustees project that private plan enrollment will keep climbing to 57.8% in 2034 (p. 159).  The Trustees explain: > "The increases that are expected in private plan penetration rates for 2025 through 2034 are partly due to higher relative rebates, which are used to lower premiums and expand benefits." Here's what’s happening under the hood: - SNP enrollment is expected to grow by 11 percent in 2025 after increasing by 13 percent in 2024. In 2026 and later years, the enrollment growth rate for these plans is expected to slow, ranging from 8 percent in 2026 to 1 percent in 2034. - LCCP-HMOs is expected to grow at a slower rate, increasing by 2.4 percent in 2025 following growth of 0.2 percent in 2024. - LCCP-PPO enrollment is expected to increase by 4 percent in 2025 after growth of 11 percent in 2024. ![private health plan projections-min](https://blog.newhorizonsmktg.com/hs-fs/hubfs/private%20health%20plan%20projections-min.png?width=800&height=629&name=private%20health%20plan%20projections-min.png) ## Estimated Depletion Date The Trustees still agree that there’s not enough money to keep funding Medicare Part A long term. - The **depletion date for the HI trust fund is now 2033**, three years earlier than last year’s projection. - Once depleted, incoming payroll taxes will only cover **89%** of program costs. ![Estimated Depletion Date 2025](https://blog.newhorizonsmktg.com/hs-fs/hubfs/Estimated%20Depletion%20Date%202025.png?width=890&height=648&name=Estimated%20Depletion%20Date%202025.png) *(Image taken from Page 27.)* Medicare Cost Projections As always, the projections come with lots of fine print and caveats: > “There is substantial uncertainty in the economic, demographic, and health care projection factors for HI trust fund expenditures and revenues.” (p. 27) But here’s the bottom line: To eliminate the funding shortfall, the Trustees suggest one of two drastic options (p. 31): - Increase the **payroll tax immediately from 2.9% to 3.32%** - OR reduce HI spending immediately by 9**%** In other words, Medicare needs to balance the checkbook, and there are only two ways to do it – get more coming in or spend less. Both of which are difficult to do. [![New for 2026: Updated Medicare Parts A&B Client Guide  ](https://no-cache.hubspot.com/cta/default/4910070/interactive-216185052081.png)](https://blog.newhorizonsmktg.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKtCMjUr2AMGRx2J15YSbQSL6%2Fm6CyxvD9QiCOhNWebIxoRQwxThh3pzPsA%2FVmNnr5ik21mcPZneDe6IpW0N%2BrMC0BXtK6Mej7mWdTdsdHD7suQq7QoshKamjDkTPrI8ZYb54ptAZircpqOY4furE4eQJ5tTd63h75L%2Fq8eqaEmpSP1aDyg4tKXvgyj9rVK2fPfz4RSM99VxAo%3D&webInteractiveContentId=216185052081&portalId=4910070)   [Medicare](https://blog.newhorizonsmktg.com/tag/medicare) ## Comments ## Read On [![NH-Medicare-Advantage-Why-Now-Product-Insights-Commission-Information-and-More](https://blog.newhorizonsmktg.com/hubfs/NH-Medicare-Advantage-Why-Now-Product-Insights-Commission-Information-and-More.jpg)](https://blog.newhorizonsmktg.com/medicare-advantage-why-now-product-insights-commission-info-more2984) ### [Medicare Advantage: Why Now, Product Insights, Commission Information, and More](https://blog.newhorizonsmktg.com/medicare-advantage-why-now-product-insights-commission-info-more2984) I’m Steve Spinner, the Director for Medicare Advantage Sales. I’m a central Illinois native, born... [![10 Easy Ways To Generate Free Medicare Leads](https://blog.newhorizonsmktg.com/hubfs/BlogImages/NH-10-Easy-Ways-To-Generate-Free-Medicare-Leads.jpg)](https://blog.newhorizonsmktg.com/easy-ways-to-generate-free-medicare-leads) ### [10 Easy Ways To Generate Free Medicare Leads](https://blog.newhorizonsmktg.com/easy-ways-to-generate-free-medicare-leads) For many new agents, finding leads is the biggest hurdle to getting started and earning a steady... [![Should Financial Advisors Get Into Medicare Sales?](https://blog.newhorizonsmktg.com/hubfs/BlogImages/NH-Should-Financial-Advisors-Get-Into-Medicare-Sales.jpg)](https://blog.newhorizonsmktg.com/financial-advisors-and-medicare-a-perfect-fit) ### [Should Financial Advisors Get Into Medicare Sales?](https://blog.newhorizonsmktg.com/financial-advisors-and-medicare-a-perfect-fit) Financial advisors may be experts when it comes to investments and estate planning, but what about... This website is for agent use only. Not for public use or distribution. ![](https://cdn.prod.website-files.com/6978e65abed067e994e8d3ed/697926babf20ddeb2d4ff972_64c7ba8d78ae605d730bbe060cf878ba_NewHorizons-White-Tag.svg) New Horizons Insurance Marketing 122 W. Prairie Ave. Suite 200 Decatur, IL 62523 Phone: [888-780-7676](tel:+1-888-780-7676) #### Navigation - [Home](https://www.newhorizonsmktg.com/) - [Agents](https://www.newhorizonsmktg.com/agents) - [Products](https://www.newhorizonsmktg.com/product-lines) - [Training](https://www.newhorizonsmktg.com/training) - [Resources](https://www.newhorizonsmktg.com/resources) - [Blog & Updates](https://blog.newhorizonsmktg.com/) - [About](https://www.newhorizonsmktg.com/about-us) - [Contact](https://www.newhorizonsmktg.com/contact) #### Social - - - - [Privacy](https://www.integrity.com/privacy-policy) - [Terms of Service](https://www.newhorizonsmktg.com/terms) - [Do Not Sell My Information](https://submit-irm.trustarc.com/services/validation/d14968e7-edec-4831-b5f2-c494567844f6) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Rebekah Parr", "url" : "https://blog.newhorizonsmktg.com/author/rebekah-parr" }, "dateModified" : "2026-06-30T16:26:02.985Z", "datePublished" : "2025-07-28T13:00:00.000Z", "headline" : "What You Actually Need to Know From the 2025 Medicare Trustees Report", "image" : [ "https://blog.newhorizonsmktg.com/hubfs/NH-What-You-Actually-Need-to-Know-From-the-2025-Medicare-Trustees-Report.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.newhorizonsmktg.com/medicare-trustees-report", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.newhorizonsmktg.com/hubfs/NHIM-Logo-transp.png" }, "name" : "New Horizons Insurance Marketing, Inc." } } ```