Medicare Premiums
Key Takeaways
- Medicare premiums are the monthly costs you pay to maintain your healthcare coverage.
- 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. and 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. premiums are calculated based on your income. These premiums are the same nationwide.
- Medicare Advantage (Part C)Medicare Advantage (Medicare Part C) is health insurance for Americans aged 65 and older that blends Medicare benefits with private health insurance. This typically includes a bundle of Original Medicare (Parts A and B) and Medicare Prescription Drug Plan (Part D). and Medicare Part DMedicare Part D is prescription drug coverage for people enrolled in Medicare. Part D is optional and is offered by private insurance companies. premiums are set by plan providers. Premiums vary by plan.
- Medicare premiums change each year. In 2025, the standard Part B premium increased by $10.30 to $185 per month.
What is a Medicare Premium ?
Are you planning your yearly budget? If you’re a Medicare beneficiary, healthcare costs can vary from month to month depending on the services you access. You’ll need to factor in copays, coinsurance, and your yearly deductible. But there’s one amount you can expect to pay each month — your Medicare premium.
A Medicare premium is a monthly fee you pay for your Medicare plan. Original Medicare Parts A and Part B have federally mandated premiums, while Medicare Advantage (Part C), Medicare Supplement Insurance (Medigap), and Medicare Part D premiums are set by private plan providers.
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What Is the New Medicare Premium?
Medicare evaluates premiums each year, and announces new Medicare Part A and Part B premiums near the end of the year. Medicare Advantage plans also announce new premiums each year. You’ll have lots of time to think about your current coverage and compare plans. You may decide to stay in the same Medicare plan or switch to a new plan with different premiums.
What are Medicare Premiums for 2025?
Medicare premiums vary depending on your Medicare plan and your income. Here’s how much you’ll pay for Medicare premiums in 2025.
Medicare Part A Premium
Medicare Part A is part of Original Medicare. It provides inpatient hospital coverage, as well as skilled nursing care. Most Medicare beneficiaries have premium-free Part A. If you or your spouse paid Medicare taxes for 40 quarters, you will not have to pay a Part A premium. In most cases, if you worked for 10 years you’ll qualify for premium-free Part A.
If you don’t qualify for premium-free Part A, monthly premiums for 2025 can range from $285 to $518 depending on how many years you or your spouse paid Medicare taxes.
Here’s how it works:
- If you paid Medicare taxes for fewer than 30 quarters, your Part A premium is $518.
- If you paid Medicare taxes for 30 to 39 quarters, your Part A premium is $285.
- If you paid Medicare taxes for at least 40 quarters, you’ll qualify for premium-free Part A.
Medicare Part B Premium
Medicare Part B helps cover medical benefits such as outpatient services and doctor’s visits. The Medicare Part B premium for 2025 starts at $185. Most Medicare beneficiaries pay the standard Part B premium. Depending on your income, however, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Your premium could rise to as high as $628.90 per month if you made $500,000 or more (or $750,000 and above if you file a joint tax return).
Medicare Part C Premium
Medicare Advantage or Medicare Part C plans offer comprehensive healthcare coverage. These plans include the same coverage as Original Medicare Parts A and B, along with additional benefits such as dental and vision coverage. Each plan carrier offering Medicare Advantage plans can set their own costs and premiums — which you may have to pay in addition to your Part A and B premiums. The good news? Medicare Advantage plan premiums start as low as $0. Some plans will even help pay up to 100% of your Part B premium.
Medicare Part D Premium
Medicare Part D provides prescription drug coverage. Just like Medicare Advantage plans, Part D plan providers set their own monthly premiums. The Centers for Medicare and Medicaid Services projected an average Medicare Part D monthly premium of $40 in 2025, down from $41.63 in 2024.
Did the Medicare Premiums Increase in 2025?
Medicare Part A premiums increased from $278 to $285 for those who paid Medicare taxes for 30 to 40 quarters. In 2024, the Medicare Part A premium for anyone who paid Medicare taxes for fewer than 30 quarters was $505. In 2025, it increased to $518.
Standard Medicare Part B premiums increased $10.30 this year, from $174.70 to $185.
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How Does Your Income Affect Medicare Premiums?
Medicare Part B premiums are calculated based on your income. If you have a higher income, Medicare Part B may cost more. For 2025, the standard Medicare Part B premium is $185 per month. Depending on your income, you may also have to pay an Income Related Monthly Adjustment Amount (IRMAA) in addition to the standard Part B premium.
Here’s how your income affects Medicare premiums in 2025 if you file an individual tax return:
- If your yearly income is $106,000 or less, you’ll pay $185 per month.
- If your income is more than $106,000 and up to $133,000, you’ll pay $259.
- If your income is more than $133,000 and up to $167,000, you’ll pay $370.
- If your income is more than $167,000 and up to $200,000, you’ll pay $480.90.
- If your income is more than $200,000 and less than $500,000, you’ll pay $591.90.
- If your income is $500,000 and up, you’ll pay $628.90.
How Do Late Penalties Affect Medicare Premiums?
The Medicare Part A late enrollment penalty only applies to beneficiaries who have to pay a Part A premium. For each year you are eligible for Medicare Part A but you were not enrolled, you’ll pay a 10% penalty for two years. So, waiting three years to enroll means you’ll pay an additional 10% for six years.
The Medicare Part B late enrollment penalty adds 10% for each year you didn’t enroll in Medicare Part B — and lasts forever. If you enroll 3 years after you’re eligible for Medicare, you’ll pay a 30% higher Part B premium as long as you’re enrolled in Medicare Part B.
The Medicare Part D late enrollment penalty equates to an additional 1% of the Part D premium for every month you don’t have prescription drug coverage. So, if you don’t enroll in Part D for 1 year, you’ll have a 12% late enrollment penalty. This is a lifetime penalty that you’ll pay as long as you’re enrolled in a Medicare Part D plan.
Sources
- Part A Costs. Medicare.gov.
- Medicare Costs. Medicare.gov.
- 2025 Medicare Parts A & B Premiums. CMS.gov.
- Medicare Advantage and Medicare Prescription Drug Programs to Remain Stable as CMS Implements Improvements to the Programs in 2025. CMS.gov.
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