Yes, Medicare premiums increased for 2025
Medicare Part B premiums (which cover doctor visits and outpatient care) rose to $185 per month in 2025, up from $174.70 in 2024. Part D premiums (prescription drug coverage) also increased, though the exact amount depends on which plan you chose. Part A (hospital insurance) premiums stayed the same for most people who are already on Medicare, but those who buy in later may pay more.
The increases happen every year because Medicare costs rise with healthcare inflation, and the program adjusts premiums to match. Your actual out-of-pocket cost may be different from the standard premium if you receive Extra Help (a program that covers some or all of your premiums) or if you have higher income.
Key Takeaways
- Part B premiums went up $10.30 per month in 2025, affecting everyone on that coverage unless you receive Extra Help.
- Part D premiums vary by plan and insurance company, so comparing your current plan to others during open enrollment can lower your cost.
- If your income is below certain thresholds, you may be able to get Extra Help to cover some or all of your premiums.
- Premium increases take effect January 1 each year, and you can change plans during the annual open enrollment period (October 15 to December 7).
How Medicare Sets Premiums Each Year
Medicare premiums are set by Congress and the Centers for Medicare & Medicaid Services (CMS) based on the cost of providing care in the previous year. When more people use hospital services, when prescription drugs cost more, or when medical procedures become more expensive, the premiums go up the following year. This is not a choice made by your insurance company — it is a federal calculation.
The Part B premium increase for 2025 was smaller than some years. In 2022, for example, the increase was much larger because of higher inflation across the healthcare system. The amount you see in your notice is the standard premium; if you have higher income, you may pay an Income-Related Monthly Adjustment Amount (IRMAA), which is an extra charge on top of the base premium.
What Counts as Income for IRMAA Calculations
If your income is above a certain level, Medicare charges you more for Part B and Part D coverage. The income thresholds for 2025 start at $97,000 for single filers and $194,000 for married couples filing jointly. Income includes wages, Social Security, pensions, interest, dividends, and certain other sources.
Medicare uses your tax return from two years before the current year to calculate IRMAA. So your 2025 premiums are based on your 2023 income. If your income dropped significantly in 2024 — because you retired, lost a job, or had a major life change — you can request that Medicare recalculate your IRMAA using your current income instead. You will need to file a form called the Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event (form SSA-44) with Social Security.
Part D Premium Changes and Plan Comparison
Part D premiums increased for 2025, but the amount varies widely depending on which insurance company and which specific plan you chose. Some plans went up by a few dollars; others increased by $10 or more per month. Because each plan sets its own premium, the best way to manage this cost is to compare plans during the annual open enrollment period.
You can review your current plan's premium and coverage on Medicare.gov, or call 1-800-MEDICARE to speak with someone who can walk you through your options. Many people find that switching to a different plan — even from the same insurance company — saves them money. The comparison tool on Medicare.gov lets you enter your current medications and see which plans cover them at the lowest cost.
Extra Help Covers Premiums for Lower-Income Beneficiaries
Extra Help is a federal program that pays some or all of your Part D premium if your income and resources are below certain limits. For 2025, the income limit is roughly $21,870 per year for a single person and $29,520 for a married couple (these amounts vary slightly by state). You can have up to $8,400 in resources as a single person or $12,600 as a married couple and still be may be able to access.
If you receive Extra Help, your Part D premium is covered in full or nearly full, and you pay a small copay for each prescription instead of the full cost. You can explore through Social Security (by phone at 1-800-772-1213, in person at a local office, or online at ssa.gov) or through your state Medicaid office. Many people who are may be able to access do not know about Extra Help, so it is worth checking even if you think your income might be too high.
When Premium Changes Take Effect and How to Plan
Medicare premium changes take effect on January 1 each year. Your new premium amount appears in a notice that Medicare mails to you in December. If you pay your premiums by having them deducted from your Social Security check, the new amount is deducted automatically starting in January. If you pay Medicare directly, you will receive a bill with the new amount.
The annual open enrollment period runs from October 15 to December 7 each year. During this window, you can switch to a different Part D plan, join or leave a Medicare Advantage plan, or make other changes to your coverage. Any changes you make during open enrollment take effect on January 1. If you miss this important date, you cannot change plans until the next open enrollment period unless you have a may have access to life event (such as moving, losing employer coverage, or a major change in income).
Part A and Part B Premium Differences
Part A premiums (hospital insurance) are usually free if you or your spouse paid Medicare taxes for at least 10 years while working. If you did not pay enough Medicare taxes, you may have to pay a premium to enroll in Part A. That premium did not increase for 2025 if you were already enrolled, but the amount you pay if you enroll later in life is higher than it was in 2024.
Part B premiums explore to everyone on Medicare, regardless of work history. These are the premiums that increased to $185 per month in 2025. Part B covers doctor visits, outpatient surgery, lab tests, and some preventive care. Unlike Part A, you cannot avoid the Part B premium by having worked a certain number of years — it is a standard cost of Medicare enrollment.
Frequently Asked Questions
Why do Medicare premiums go up every year?
Medicare premiums increase when the cost of healthcare rises. Doctors charge more, hospitals raise their fees, and prescription drugs become more expensive. Medicare adjusts premiums to keep the program solvent and to pay for the care that beneficiaries use. Congress and CMS review these costs annually and set premiums accordingly.
Can I appeal my IRMAA if I think it is wrong?
Yes. If you believe Medicare calculated your IRMAA incorrectly, you can request a review by calling Social Security at 1-800-772-1213 or visiting your local Social Security office. You will need to provide documents showing your actual income. If your income dropped due to a life-changing event, you can file form SSA-44 to request a recalculation.
What happens if I cannot afford my new premium?
First, check whether you may have access to for Extra Help, which covers Part D premiums for lower-income beneficiaries. If you do not may have access to for Extra Help, contact your state's Health Insurance information Program (SHIP) — they offer free counseling about Medicare costs and may know about other programs in your area. You can find your state SHIP by calling 1-800-MEDICARE.
Can I change my Part D plan if the premium went up too much?
Yes, during the annual open enrollment period (October 15 to December 7), you can switch to a different Part D plan at no penalty. You can also switch if you have a may have access to life event outside of open enrollment. Use the plan comparison tool on Medicare.gov to find plans with lower premiums that still cover your medications.
Do all Medicare beneficiaries pay the same Part B premium?
Most beneficiaries pay the standard Part B premium of $185 per month in 2025. However, if your income is above certain thresholds, you pay an additional amount called IRMAA on top of the standard premium. The higher your income, the more you pay. If you receive Extra Help, your Part D premium is covered, but Part B premiums are not covered by Extra Help.