Medicare costs in 2025 vary by which part you have and which plan you choose

Medicare has different costs depending on whether you have Original Medicare (Parts A and B), a Medicare Advantage plan (Part C), or prescription drug coverage (Part D). The amounts change each year. For 2025, Part B premiums increased, deductibles went up, and out-of-pocket limits changed. The exact cost you pay depends on your income, which plan you pick, and how much medical care you use.

This guide explains what each part costs and what those costs cover. It does not determine what you will pay — your actual costs depend on your specific situation and plan choice.

Key Takeaways

  • Part B premiums for most people are $177.90 per month in 2025, but higher earners pay more through Income-Related Monthly Adjustment Amounts (IRMAA).
  • The Part B deductible is $240 in 2025, and you pay 20% of most services after you meet it.
  • Part A (hospital insurance) is usually free if you or your spouse paid Medicare taxes for at least 10 years, but hospital stays have a $1,676 deductible in 2025.
  • Medicare Advantage plans have their own premiums, deductibles, and out-of-pocket limits that vary by plan and insurer.
  • Part D prescription drug plans have premiums, deductibles, and coverage gaps that differ by plan, and costs increase for higher earners through IRMAA.

Part A costs: Hospital insurance

Most people do not pay a monthly premium for Part A if they or their spouse paid Medicare taxes while working for at least 10 years. If you do not meet that requirement, you may pay a premium — the amount depends on how many quarters of Medicare tax you paid.

When you use Part A, you pay a deductible for each hospital stay. In 2025, the Part A deductible is $1,676 per benefit period. A benefit period starts when you enter the hospital and ends 60 days after you leave without being readmitted. If you go back to the hospital after those 60 days, a new benefit period begins and you pay another deductible.

After you pay the deductible, Part A covers your hospital stay with no additional cost for the first 60 days. Days 61 through 90 cost you $419 per day in 2025. If you need to stay longer than 90 days, you can use your "lifetime reserve days" — 60 additional days that Medicare covers at $838 per day. Once you use your lifetime reserve days, you pay all costs.

Part A also covers skilled nursing facility care, hospice, and some home health services, each with their own cost structure.

Part B costs: Doctor visits and outpatient care

Part B covers doctor visits, outpatient services, lab tests, and medical equipment. Most people pay a monthly premium for Part B. For 2025, the standard Part B premium is $177.90 per month for people with income below certain thresholds.

If your income is higher, you pay an additional amount called an Income-Related Monthly Adjustment Amount (IRMAA). IRMAA is based on your income from two years prior — so 2025 payments are based on your 2023 tax return. The more you earned, the higher your Part B premium. These higher premiums can range from $248.90 to $560.50 per month depending on your income level.

After you pay your monthly premium, you also pay a yearly deductible. The Part B deductible for 2025 is $240. Once you meet this deductible, you typically pay 20% of the cost for most services, and Medicare pays 80%. Some services, like preventive care, have no cost-sharing after you meet the deductible.

Medicare Advantage plan costs

Medicare Advantage plans (Part C) are offered by private insurers and must cover everything Original Medicare covers, plus usually prescription drugs and dental or vision benefits. However, they have their own cost structure.

Most Medicare Advantage plans charge a monthly premium in addition to your Part B premium. Some plans have $0 premiums, but these often have higher deductibles or copays. You also pay a deductible before the plan starts covering services — this varies by plan and can range from $0 to several hundred dollars. After you meet the deductible, you typically pay a copay (a set amount like $20 for a doctor visit) or coinsurance (a percentage of the cost).

Medicare Advantage plans have an out-of-pocket maximum. Once you reach this limit in a calendar year, the plan pays 100% of your covered services for the rest of that year. In 2025, the out-of-pocket maximum cannot exceed $8,850 for in-network services. Plans can set their maximum lower than this cap.

The specific costs depend entirely on which plan you choose and which insurer offers it in your area. Two plans in the same county can have very different premiums, deductibles, and copays.

Part D costs: Prescription drug coverage

Part D is prescription drug coverage offered by private insurers. You can add it to Original Medicare, or it may be included in your Medicare Advantage plan. Each Part D plan has its own premium, deductible, and list of covered drugs.

In 2025, Part D premiums vary widely by plan — some start around $7 per month, while others cost $100 or more. The yearly deductible can be up to $545 in 2025, though many plans have lower deductibles or no deductible at all. Like Part B, if your income is higher, you pay an additional IRMAA on top of your Part D premium.

Part D has a coverage structure with different cost levels. After you pay your deductible, you enter the initial coverage phase where you pay a copay or coinsurance for each prescription. Once you and your plan have spent a combined $6,500 in 2025, you enter the "coverage gap" or "donut hole." In the gap, you pay a higher percentage of drug costs — though this percentage has been decreasing each year. Once your out-of-pocket spending reaches $8,550 in 2025, you enter catastrophic coverage and pay only a small copay for the rest of the year.

Income-Related Monthly Adjustment Amounts (IRMAA)

If your income exceeds certain thresholds, you pay higher premiums for Part B and Part D. These additional amounts are called Income-Related Monthly Adjustment Amounts. IRMAA is calculated based on your Modified Adjusted Gross Income (MAGI) from your tax return from two years before.

For 2025, the income thresholds that trigger IRMAA are $97,000 for single filers and $194,000 for married couples filing jointly. If your income is above these amounts, you pay more. The higher your income, the higher your IRMAA — there are five income brackets, and the highest earners pay significantly more.

If your income changes — such as from a job loss, retirement, or death of a spouse — you can request a life event change to have your IRMAA recalculated based on your current year income rather than waiting two years. You must report the change within 60 days of the event.

What is not covered and what you pay out-of-pocket

Medicare does not cover everything. Routine dental care, vision exams, hearing aids, and long-term care are not covered by Original Medicare. Some Medicare Advantage plans include dental or vision benefits, but these are often limited.

If you receive services that Medicare does not cover, you pay the full cost yourself. Additionally, if you see a provider who does not accept Medicare, you may pay more or the full cost. With Original Medicare, you can see any provider who accepts Medicare, but you are responsible for any difference between what they charge and what Medicare pays if they do not accept assignment.

Medigap (supplemental insurance) can help cover some of these out-of-pocket costs, but Medigap premiums are separate and vary by plan and insurer.

Frequently Asked Questions

Why did my Part B premium increase so much from 2024 to 2025?

Part B premiums are set each year based on expected costs for the coming year. Premiums increased for 2025 because of higher anticipated healthcare costs. The increase affects everyone, though the exact amount depends on your income level and whether you pay IRMAA.

If I delay enrolling in Medicare, will my costs be higher?

Yes. If you do not enroll in Part B or Part D when you first become may be able to access, you typically pay a permanent penalty — your premium will be higher for as long as you have Medicare. The penalty is usually 10% of the premium for each 12-month period you were not enrolled.

Can I change my Medicare plan if costs are too high?

Yes, but only during specific times. The Annual Enrollment Period runs from October 15 to December 7 each year, and you can switch plans then. If you have a may have access to life event — such as moving, losing employer coverage, or a significant income change — you may be able to change plans outside this window.

Do I have to pay IRMAA if my income went down this year?

IRMAA is based on your income from two years prior, so it does not automatically adjust when your income changes. However, if you had a may have access to life event that reduced your income — such as retirement, job loss, or death of a spouse — you can request a recalculation within 60 days of the event.

What happens if I cannot afford my Medicare premiums?

If your income is low, you may be able to get help paying premiums through Medicaid or other state programs. Contact your state Medicaid office or local Area Agency on Aging to learn what programs may be available in your area.