Medicare premiums increasing in 2025: Here's how much
Medicare premiums are increasing again in 2025.
The Centers for Medicare and Medicaid Services (CMS) announced this month that standard monthly premiums for its Part B plan are increasing by about 6% in the new year.
The jump outpaces both inflation and the cost-of-living adjustment (COLA) recently announced by Social Security.
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Social Security COLA 2025 increase announced: What to know
The cost-of-living adjustment, or COLA, was announced on Thursday. Here’s what to know.
Inflation was up in September about 2.4% from a year ago, and the COLA increase is set for 2025 at 2.5%, which is estimated to be about $48.
Medicare Part B premium 2025 increase
The standard monthly premium for Medicare Part B enrollees is increasing next year to $185, an increase of $10.30, or just less than 6%, from $174.70 in 2024, the CMS announced.
The annual deductible for all Medicare Part B beneficiaries is also increasing by $17 to $257.
Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, some medical equipment and certain other services.
For higher-income enrollees
CMS said about 8% of those with Medicare Part B are subject to an Income-Related Monthly Adjustment Amount, or IRMAA.
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 lists those amounts HERE.
Medicare Part A cost increase
Only 1% of people receiving Medicare benefits have a Part A premium, according to CMS. Medicare Part A covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation and some home health care services.
Part A premiums and deductibles are also increasing in 2025. The full Part A premium will be $518 a month, a $13 increase from 2024. Deductibles are also increasing if a beneficiary is admitted to the hospital.
Those amounts are listed HERE.
Social Security COLA
The Social Security COLA increase for 2025 will be 2.5%, the administration announced in October.
The 2025 COLA increase is smaller than those in the previous two years, which is reflective of moderating inflation.
About 70.6 million people participate in the Social Security program, with an average benefit of about $1,920 a month.
What is Medicare Advantage?
Medicare Advantage, also known as Part C, is a Medicare-approved plan from a private company that offers an alternative to original Medicare.
These "bundled" plans include Part A, Part B, and usually Part D. Plans may offer some extra benefits that Original Medicare doesn’t.
Medicare Part D is a voluntary prescription drug benefit.
The Source: Information in this article was used from a Nov. 8, 2024, press release from The Centers for Medicare and Medicaid Services (CMS) detailing its 2025 changes to Medicare Parts A and B premiums and deductibles. Information on the Social Security cost-of-living adjustment was taken from the Social Security announcement on Oct. 10, 2024. This story was reported from Detroit.