Medicare Changes for 2025

If you are 65 or older, you may have already heard about the major disruptions coming to Medicare Advantage plans in Minnesota for 2025. These changes will impact many retirees and their access to doctors, hospitals, and benefits.

What’s Changing

• UCare will be terminating all Medicare Advantage plans statewide, affecting over 158,000 Minnesota seniors.
• Other insurers (including HealthPartners, Humana, UnitedHealthcare, and Aetna) are scaling back offerings, exiting service areas, or losing contracts with major health systems.
• Provider access is shrinking: Starting January 1, 2025, several leading Minnesota health systems — including Allina, Essentia, M Health Fairview, North Memorial, Sanford, and Mayo Clinic — will no longer accept certain MA plans.
• Plan design changes: Many Medicare Advantage plans are reducing supplemental benefits (like dental, vision, and hearing), increasing prior authorization requirements, and raising out-of-pocket costs.

Why This Matters

If you are on a Medicare Advantage plan, these changes could affect your:

• Access to your preferred doctors and hospitals
• Out-of-pocket healthcare costs
• Coverage for routine services like dental, vision, and hearing

For some, switching to Traditional Medicare with a supplemental (Medigap) plan may now provide more stability and flexibility. While Traditional Medicare comes with premiums and requires a standalone drug plan, it:

• Allows you to see any provider nationwide that accepts Medicare
• Rarely requires prior authorization
• Offers more predictable, stable coverage year to year

What We’re Doing

As financial planners, Medicare is not a line of business for us — but it directly impacts your retirement security. Here’s how we are supporting clients:

1. We are reviewing our records to identify clients age 65+ and determine whether they are currently enrolled in a Medicare Advantage or Traditional Medicare plan.
2. We are coordinating with trusted Medicare specialists who are closely tracking these changes.
3. We may also be able to arrange a dedicated day in our office where a Medicare specialist will meet with clients one-on-one to review coverage options.

Next Steps for You

• If you are on Medicare Advantage, expect to receive notices from your insurer this fall. Do not ignore them.
• During the annual election period (Oct. 15 – Dec. 7, 2024), carefully review your options.
• Reach out to us if you’d like to be connected with a Medicare specialist to discuss your coverage: 651-797-3532.

Disclosure: Freedom Financial Partners is a registered investment adviser located in St. Paul, MN. This communication is for informational purposes only and should not be construed as personalized investment or insurance advice. Freedom Financial Partners does not sell or solicit Medicare or insurance products. Please consult with a licensed insurance professional or Medicare specialist for guidance specific to your situation.