The Centers for Medicare and Medicaid Services (CMS) announced that Medicare premiums will increase in the new year.
Medicare is a federal health insurance program overseen by the Social Security Administration (SSA). This includes people over 65 and some people under 65 with certain disabilities or conditions.
Medicare Part B includes doctor visits, outpatient care, preventive services such as vaccines, equipment such as wheelchairs, and home health care. Part A covers inpatient and facility care and is free of premiums for most beneficiaries.
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As of January 2025, Medicare Part B premiums will increase by approximately 6%.
The standard monthly premium for Medicare Part B enrollees in 2025 will be $185, an increase of $10.30 from the 2024 rate of $174.70. This is deducted from your monthly Social Security check. For those who do not receive social security, Payment must be made in person We will send you a bill every three months via your Medicare account, bank, or mail.
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The annual deductible for all Medicare Part B beneficiaries will increase by $17 from the $240 deductible in 2024 to $257 in 2025.
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All Medicare Part B enrollees pay a standard premium, but wealthier people also pay an amount called the Income-Related Monthly Adjustment Amount (IRMAA). The income thresholds for married people who lived with their spouse throughout the year and filed separate tax returns are as follows:
- If your income is $106,000 or less, you only pay the standard Medicare Part B premium of $185.00 per month.
- Beneficiaries with incomes greater than $106,000 and less than $394,000 will pay IRMAA of the standard $185.00 plus $406.90.
- Those with incomes over $394,000 will pay $443.90 in IRMAA plus the standard $185.00 premium, which comes out to $628.90 per month.
For Part A, the hospital medical expense deductible will increase by $44 to $1,676 next year, up from $1,632 in 2024. For people who haven't worked long enough to qualify for premium-free Part A, the monthly Part A premium is $518. Starting this year, it's $13.
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Medicare Part B premiums in 2025 exceed inflation and the Social Security Cost of Living Adjustment (COLA). COLAs are used to increase benefits each year so that seniors and other recipients do not lose purchasing power over time. The annual inflation rate rose 3.2% in October, but the COLA for 2025 will be 2.5%.
CMS said the change was due to “anticipated price changes and expected usage increases consistent with past experience.” Medicare premiums don't necessarily go up every year, but costs rarely go down. Premiums for 2023 will be $164.90, down more than $5 from the previous year.
