Medicare Costs for 2025: What You Should Know
Key Takeaways
- The Medicare Part BMedicare Part B is medical insurance that covers Medicare-approved services — such as medically necessary treatment and preventive services — and certain other costs, like durable medical equipment. Medicare Part B is part of Original Medicare. monthly premiumA premium is a fee you pay to your insurance company for health plan coverage. This is usually a monthly cost. for 2025 is $185, and the Part B annual deductibleA deductible is an amount you pay out of pocket before your insurance company covers its portion of your medical bills. For example: If your deductible is $1,000, your insurance company will not cover any costs until you pay the first $1,000 yourself. for 2025 is $257 — both increases.
- Costs related to Medicare Part AMedicare Part A is hospital insurance, which covers the care you receive while admitted to a hospital, skilled nursing facility, or other inpatient facility. Medicare Part A is part of Original Medicare. are also on the rise — although the large majority of people don’t pay a Part A premium.
- The higher costs are the result of projected increases in healthcare spending, according to the Centers for Medicare & Medicaid Services (CMS).
- The lowest cost or most coverage may not always be the best option for you.
Medicare Part B Premium for 2025
The Medicare Part B monthly premium increased for 2025.
The Part B premium for 2025 is $185 a month, a 6% increase from 2024.
For Medicare beneficiaries who draw Social Security, the rate increase coincides with an increase in their Social Security benefits. The Social Security Administration recently announced a 2.5% Cost-of-Living Adjustment for 2025.
The Centers for Medicare & Medicaid Services (CMS) also announced increases in the Part B deductible and the Part A premium and deductible.
Why is the Part B Premium Increasing in 2025?
Medicare Part B, which provides medical insurance for millions of Americans, features a standard monthly premium every year.
According to CMS, the premium went up for 2025 because of projected increases in healthcare prices and in the utilization of benefits.
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Medicare Part B Deductible for 2025
CMS noted the same reasons for an increase in the Part B deductible from $240 in 2024 to $257 in 2025.
How Do Part B Premiums and Deductibles Work?
If you are enrolled in Part B of Original Medicare, you are responsible for paying a premium each month that keeps your coverage active.
Your deductible is the amount you pay before your insurance policy will cover its portion of your medical bills. So when you use your Part B coverage by visiting a doctor or purchasing durable medical equipment for example, you typically are responsible for the costs out of pocket until you meet your deductible. After that, you still may be responsible for copays or coinsurance for covered services, but Part B will cover 80% of costs for most services.
Medicare Part A Costs for 2025
Ninety-nine percent of people don’t have to pay a monthly premium for Medicare Part A, which is hospital insurance. But if you do receive treatment in a hospital or other approved facility, you are responsible for some costs.
- For 2025, the inpatient hospital deductible is $1,676, an increase from $1,632 in 2024. After you pay the benefit period deductible, your Medicare-approved inpatient care for the first 60 days costs you nothing.
- For Days 61-90, you are responsible for $419 of daily coinsurance, up from $408 in 2024.
- For lifetime reserve days (up to 60 days of coverage that you get after Day 90), you pay $838 coinsurance per day used — up from $816 in 2024.
- For approved stays in a skilled nursing facility, Medicare Part A doesn’t require you to pay a deductible or coinsurance for the first 20 days. You pay $209.50 coinsurance for Days 21-100, up from $204 in 2024.
Medicare Part A Premium for 2025
One percent of Medicare beneficiaries are responsible for the Medicare Part A monthly premium because they (or a qualifying spouse) haven’t paid Medicare employment taxes for 10 or more years (40 or more quarters).
- Individuals who have logged fewer than 30 quarters are responsible for a monthly premium of $518 in 2025, a $13 decrease from 2024.
- Individuals who have logged at least 30 quarters but fewer than 40 are responsible for a monthly premium of $285 in 2025, a $7 increase from 2024.
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Income Related Adjustments for Part B, Part D
Part B has a standard premium that is set each year, and Part D prescription drug plans have a premium that varies from plan to plan.
But on top of those premiums, higher earners are required to pay higher premiums.
CMS estimates that 7% of Medicare beneficiaries are impacted by the following Income Related Monthly Adjusted Amounts (IRMAA), which are based on your 2023 modified adjusted gross income.
2025 Medicare Part B IRMAA
If you were married and lived with your spouse during the tax year but filed a separate return, your Part B IRMAA is:
Annual income up to $106,000
- IRMAA: $0
Annual income from $106,001-$394,000
- IRMAA: $406.90
Annual income greater than or equal to $394,000
- IRMAA: $443.90
Your premium for a Medicare Part D plan can also increase based on income. Part D IRMAA breaks down as follows:
2025 Medicare Part D IRMAA
If you were married and lived with your spouse during the tax year but filed a separate return, your Part D IRMAA is:
Annual income up to $106,000
- IRMAA: $0
Annual income from $106,001-$394,000
- IRMAA: $78.60
Annual income greater than or equal to $394,000
- IRMAA: $85.80
What it Means for You
You now have a lot of information at your fingertips about 2025 Medicare costs, but what do you do with it? Parts A and B coverage is the cornerstone of Original Medicare. Parts A and B coverage also is at the heart of Medicare Advantage, an alternative to Original Medicare offered by private insurance companies that includes Parts A and B coverage but offers additional benefits and potential savings.
Original Medicare
- If you have a qualifying work history, your Part A benefits don’t come with a monthly premium.
- Your Medicare Part B premium is set each year by the federal government and income brackets determine if you pay a standard rate or more.
- There is no limit on what you pay out of pocket each year. You will always be responsible for 20% of expensive treatments or surgery. These services can be costly.
- Original Medicare usually costs more than Medicare Advantage but can make budgeting your healthcare costs easier by offering predictable pricing for services.
- Original Medicare does not have the protection of out-of-pocket limits.
Medicare Advantage
- Your Part A and Part B coverage are always the same but networks, copays, and Rx options can change from plan to plan. You must still pay your Part B premium if you switch to Medicare Advantage.
- Insurance companies are paid by the federal government to administer Medicare Advantage plans and each company determines their plans costs.
- Roughly half of all Medicare Advantage plans offer a Part D plan without an additional deductible.
- Medicare Advantage offers maximum out-of-pocket limits, so any covered services after reaching MOOP cost nothing for the remainder of the calendar year.
You will likely need to visit doctors, hospitals, and pharmacies that are in your plan’s provider network.
Plans may offer additional services, like dental and vision, wellness programs, transportation, and more.
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Make the Right Choice by Comparison
Making an important choice like what health insurance plan to purchase is huge! There are so many details, and there are licensed insurance agents, like GoHealth, that can help you wade through those waters. But if you choose to comparison-shop on your own, consider these four topics over anything else.
Total Cost for Care
It’s important to think about your total out-of-pocket costs, including deductibles, copayments, coinsurance, maximums, and drug costs, that you’ll pay with a Medicare health or drug plan.
Provider
Some plan types have a network of providers you’ll have to use if you want to pay less. If you have a particular doctor or pharmacy that you prefer to go to, check if they are in-network when choosing a plan.
What Benefits Do you Need?
Many Medicare Advantage plans include prescription drug, vision, hearing, and dental coverage.
Overall Star Rating
The Star Rating for a Medicare Advantage plan gives you valuable insight into the quality of its services. A plan can earn a rating between 1 and 5 stars.
If Medicare doesn’t cover all my health costs, what’s my option?
Others receive Medicare through private health plans called Medicare Advantage (MA) plans. MA plans have lower premiums with provider networks, but usually cover Part D and some include vision, dental and hearing. If your providers are in a Medicare Advantage network, it’s a great option.
If I have insurance with my job, should I even bother with Medicare?
If I find a better plan, how do I switch coverage or enroll in the new plan?
There’s also a separate open enrollment window for Medicare Advantage and Part D that allows you to switch plans. This window runs from January 1 to March 31. If you’re new to Medicare and miss your Initial Enrollment Period, you can enroll in Medicare during this window, with coverage changes effective the first of the following month.
Sources
- 2025 Medicare Parts A & B Premiums and Deductibles. CMS.gov.
- SSI Federal Payment Amounts. SSA.gov.
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