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A lot of changes are coming to Medicare plans in 2025, and now is a great time for enrollees to map out how their costs might change in the new year.
On Friday, the Centers for Medicare and Medicaid Services announced that the standard premium for Medicare Part B will rise to $185 a month in 2025, up from $174.70 this year.
Part B covers doctor’s visits, outpatient care, durable medical equipment, and certain other services. The Centers for Medicare and Medicaid Services based the premium increase on projected changes in healthcare prices and usage, the agency said.
Most Medicare beneficiaries have their Part B premium automatically deducted from their Social Security check. As such, the $10 a month increase will eat into the 2.5% raise that Social Security recipients will receive as a cost-of-living adjustment for 2025.
The Part B premium is growing by 5.9%, which is about average for the past decade and a rate that consistently outpaces the average COLA growth, according to Mary Johnson, an independent Social Security and Medicare policy analyst.
Higher-income Medicare enrollees pay more for their Part B. The threshold for paying the income-related monthly adjustment amounts, or IRMAA, will rise to more than $106,000 for an individual and more than $212,000 for a married couple filing jointly. Above that level through $133,000 for an individual and $266,000 for a married couple, beneficiaries will pay $259.00 a month for Part B.
There are four income thresholds above that level, topping out at $500,000 and above for an individual and $750,000 and above for a couple. People in the top category would pay a monthly premium of $628.90.
The annual Part B deductible will be $257 in 2025, up $17 from $240 this year. The Part A inpatient hospital deductible will rise to $1,676 next year from $1,632 this year. Most beneficiaries don’t pay a monthly premium for Part A hospital coverage.
While premium rates are fixed for 2025, beneficiaries have the opportunity this fall to potentially lower some of their other Medicare costs. Open enrollment is under way for 2025 coverage. Through Dec. 7, beneficiaries can pick a new stand-alone Medicare Part D drug plan, a new Medicare Advantage plan, or switch from traditional Medicare into Medicare Advantage or vice versa.
There are more changes than usual to plan design for 2025, experts say, in part due to the Inflation Reduction Act’s $2,000 cap on out-of-pocket drug expenses, which will take effect next year. Be sure to look beyond the monthly premium to your total costs when comparing stand-alone Part D plans or Medicare Advantage plans. You can explore your options on the government’s Plan Finder tool.
Medicare Is Changing in 2025. How to Prepare.
On Friday, the Centers for Medicare and Medicaid Services announced that the standard premium for Medicare Part B will rise to $185 a month in 2025, up from $174.70 this year.
Part B covers doctor’s visits, outpatient care, durable medical equipment, and certain other services. The Centers for Medicare and Medicaid Services based the premium increase on projected changes in healthcare prices and usage, the agency said.
Most Medicare beneficiaries have their Part B premium automatically deducted from their Social Security check. As such, the $10 a month increase will eat into the 2.5% raise that Social Security recipients will receive as a cost-of-living adjustment for 2025.
The Part B premium is growing by 5.9%, which is about average for the past decade and a rate that consistently outpaces the average COLA growth, according to Mary Johnson, an independent Social Security and Medicare policy analyst.
Higher-income Medicare enrollees pay more for their Part B. The threshold for paying the income-related monthly adjustment amounts, or IRMAA, will rise to more than $106,000 for an individual and more than $212,000 for a married couple filing jointly. Above that level through $133,000 for an individual and $266,000 for a married couple, beneficiaries will pay $259.00 a month for Part B.
There are four income thresholds above that level, topping out at $500,000 and above for an individual and $750,000 and above for a couple. People in the top category would pay a monthly premium of $628.90.
The annual Part B deductible will be $257 in 2025, up $17 from $240 this year. The Part A inpatient hospital deductible will rise to $1,676 next year from $1,632 this year. Most beneficiaries don’t pay a monthly premium for Part A hospital coverage.
While premium rates are fixed for 2025, beneficiaries have the opportunity this fall to potentially lower some of their other Medicare costs. Open enrollment is under way for 2025 coverage. Through Dec. 7, beneficiaries can pick a new stand-alone Medicare Part D drug plan, a new Medicare Advantage plan, or switch from traditional Medicare into Medicare Advantage or vice versa.
There are more changes than usual to plan design for 2025, experts say, in part due to the Inflation Reduction Act’s $2,000 cap on out-of-pocket drug expenses, which will take effect next year. Be sure to look beyond the monthly premium to your total costs when comparing stand-alone Part D plans or Medicare Advantage plans. You can explore your options on the government’s Plan Finder tool.
