Premiums for Medicare Part B to rise in 2025: What to know
(NEXSTAR) — While seniors are on track to benefit from a cost-of-living adjustment to their Social Security payments in 2025, they will also be faced with increased costs for their healthcare as certain Medicare premiums are set to become more expensive.
The Centers for Medicare & Medicaid Services announced last week that the Medicare Part B premiums will rise (as will the annual deductible) next year. Premium, deductible, and coinsurance rates for Medicare Part B are determined annually.
Medicare is available for people who are 65 years old or older, with earlier access available to those who meet certain qualifications. There are four parts to Medicare: Part A covers hospital insurance, Part B is Medicare insurance, Part C is Medicare Advantage Plans, and Part D is reserved for drug coverage.
In most cases, there is no premium for Part A. Monthly premiums for Parts C and D are determined based on the plan a person enrolls in. There is also a monthly premium for Part B, even if a person does not use any services covered by Part B — physicians' services, outpatient hospital services, some home health services, and medical equipment, for example — that month.
In 2025, the standard monthly premium for Medicare Part B enrollees will be $185, up $10.30 from the current rate. The annual deductible — or the amount the enrollee pays before insurance begins to pay for health services — for all Part B beneficiaries will increase by $17 to $257 next year.
"The increase in the 2025 Part B standard premium and deductible is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience," CMS said. The last time Part B's premium dropped was in 2023.
A beneficiary's Medicare Part B monthly premium is based on their income, with roughly 8% of enrollees having to pay monthly adjustment amounts.
For those who are married and will live with their spouse at any time in 2025, but will file a separate tax return and have a modified adjusted gross income of $106,000 or less, the total monthly premium for Medicare Part B they will pay is $185.
If their adjusted gross income is between $106,000 and $394,000, they will be responsible for an Income-Related Monthly Adjustment Amount, or IRMAA, of $406.90 in 2025, plus the aforementioned premium, pushing their monthly payment to $591.90. Those with an adjusted gross income at or above $394,000 will have an IRMAA of $443.90, leading to a monthly premium amount of $628.90.
Other changes announced by CMS last week, seen here, include an increase to the Medicare Part A inpatient hospital deductible (up $44 to $1,676 in 2025) and income-related monthly adjustments to Medicare Part D.
Topics
-
What are the Medicare premiums and costs in 2025?
Business - MarketWatch - Yesterday -
What seniors should know about Medicare open enrollment for 2025
Top stories - CBS News - November 1 -
Seniors will pay more for Medicare in 2025. Here's what to know.
Top stories - CBS News - 2 days ago -
Medicare or Medicare Advantage? A Guide for 2025
Health - The New York Times - November 1 -
Home insurance premiums to keep rising in ‘difficult year’
World - Financial Times - October 20 -
What you need to know about open enrollment for 2025 benefits
Top stories - CBS News - October 17 -
Inherited IRA rules are changing in 2025 — here's what beneficiaries need to know
Business - CNBC - October 17 -
What to know about the 2025 inflation-adjusted tax brackets
Top stories - CBS News - October 23 -
Beyoncé leads the 2025 Grammy noms, becoming the most nominated artist in the show’s history
Entertainment - ABC News - 4 days ago
More from The Hill
-
Giuliani’s lawyers quit over ‘fundamental disagreement’
Politics - The Hill - 20 minutes ago -
Bolton calls for FBI investigations before Gaetz, Gabbard confirmations
Politics - The Hill - 33 minutes ago -
Democrats express concern over Gaetz pick
Politics - The Hill - 52 minutes ago -
Jamie Lee Curtis deactivates her account on X
Politics - The Hill - 1 hour ago -
Trump gets blowback for untested Pentagon chief pick
Politics - The Hill - 1 hour ago
Latest in Politics
-
Giuliani’s lawyers quit over ‘fundamental disagreement’
Politics - The Hill - 20 minutes ago -
Bolton calls for FBI investigations before Gaetz, Gabbard confirmations
Politics - The Hill - 33 minutes ago -
Trump to nominate Matt Gaetz for attorney general
Politics - CBS News - 34 minutes ago -
Democrats express concern over Gaetz pick
Politics - The Hill - 52 minutes ago -
Jamie Lee Curtis deactivates her account on X
Politics - The Hill - 1 hour ago