The standard monthly premium for Medicare Part B — the part of Medicare that covers doctor’s visits, routine cancer screenings, home health care and other outpatient services — will be $185 for 2025, the Centers for Medicare & Medicaid Services (CMS) announced Nov. 8. This is an increase of $10.30 from 2024 and is similar to the nearly $10 monthly premium hike seen in 2024, from 2023.

Part B beneficiaries with annual individual incomes greater than $106,000 will pay more than the standard premium, though how much more depends on their income. CMS says income-related monthly adjustments affect roughly 8 percent of people with Part B insurance.

The annual deductible for all Medicare Part B beneficiaries is also going up in 2025, rising from $240 in 2024 to $257. Medicare beneficiaries typically pay 20 percent of the cost for each Medicare-covered service or item after they’ve met their deductible.

In a news release, CMS explained that the Part B increases for the standard monthly premium and deductible are “mainly due to projected price changes and assumed utilization increases that are consistent with historical experience.”

The news from CMS comes about a month after the Social Security Administration (SSA) announced a 2.5 percent cost-of-living-adjustment (COLA) in 2025, which will bump up the average Social Security retirement benefit by nearly $50 a month. Monthly premiums for most Part B beneficiaries are deducted directly from their Social Security payments. 

Medicare’s standard monthly Part B premiums

In 1966, Medicare’s first year, Part B premiums were $3 a month, $29.75 adjusted for inflation. For 2025, most Medicare beneficiaries will pay $185.

Part A costs are also increasing 

The vast majority of people with Medicare do not pay a monthly premium for Part A, which covers inpatient care, hospice care and stays at skilled nursing facilities. However, there is a deductible for beneficiaries if they are admitted to the hospital.

In 2025, this deductible will be $1,676 a stay, up $44 from $1,632 in 2024, CMS announced. If the hospital stay goes beyond 60 days, beneficiaries will pay a coinsurance amount of $419 per day through day 90. This was $408 in 2024.  

The small share of people that do pay a monthly Part A premium will also pay more in 2025. The full Part A premium will be $518 a month, a $13 increase from 2024.

Part D will have a new out-of-pocket spending limit

Earlier this fall, CMS announced the average monthly premium for a stand-alone Medicare Part D plan (prescription drug coverage) is projected to decrease from $41.63 in 2024 to $40 in 2025. (This is just the average; some plan premiums will increase.)

Similar to Part B premiums, some high-earning beneficiaries will pay more for their monthly premiums depending on their annual income. For example, someone earning more than $106,000 a year and less than or equal to $133,000 will pay an additional $13.70 for their monthly Part D premium, CMS says. 

One big change coming in 2025 for Part D is a $2,000 out-of-pocket cap on prescription drugs.

TheBeatDaily