Medicare costs in 2025: premiums, deductibles, and out-of-pocket limits

Medicare costs in 2025 depend on which parts you use and whether you have Original Medicare or a Medicare Advantage plan. Part A (hospital insurance) has no monthly premium for most people, but you pay a deductible when you enter the hospital. Part B (doctor visits and outpatient care) costs a monthly premium that increases each year based on your income. Part D (prescription drugs) and Medigap (supplemental coverage) add their own premiums on top.

The amounts change every January, and 2025 brought increases across most categories. The exact cost you pay depends on three things: which parts of Medicare you have, your income level, and whether you enrolled on time or late. This guide walks through what each part costs and what affects your bill.

Key Takeaways

  • Part A has no monthly premium for most people, but you pay a $1,676 deductible per hospital stay in 2025.
  • Part B costs $174.70 per month for most people in 2025, but higher earners pay more through Income-Related Monthly Adjustment Amounts (IRMAA).
  • Part D premiums vary by plan and drug coverage, and the out-of-pocket spending limit is $8,550 in 2025.
  • Late enrollment penalties add permanent costs to your monthly bill if you don't sign up when first may be able to access.
  • Your actual costs depend on which doctors and pharmacies you use, your prescription drugs, and whether you have Medigap or Medicaid.

Part A costs: hospital stays and skilled nursing

Part A covers hospital stays, skilled nursing facility care, hospice, and some home health services. You do not pay a monthly premium if you or your spouse paid Medicare taxes for at least 10 years while working. If you do not meet that requirement, you can buy Part A coverage, and the premium ranges from $278 to $556 per month depending on how many years you paid Medicare taxes.

When you use Part A, you pay a deductible of $1,676 per benefit period in 2025. A benefit period starts when you enter the hospital and ends 60 days after you leave. If you go back to the hospital more than 60 days later, that is a new benefit period and you pay the deductible again. After you pay the deductible, Medicare covers all hospital costs for days 1 through 60. Days 61 through 90 cost you $419 per day. Days 91 and beyond cost $838 per day, up to a lifetime limit of 60 additional days.

Skilled nursing facility care (not regular nursing home care) is covered after a hospital stay of at least three days. You pay nothing for days 1 through 20, then $209.50 per day for days 21 through 100 in 2025.

Part B costs: doctor visits and outpatient services

Part B covers doctor visits, lab tests, X-rays, ambulance services, and outpatient hospital care. The standard monthly premium in 2025 is $174.70 for most people. However, if your income is above a certain threshold, you pay more through a surcharge called an Income-Related Monthly Adjustment Amount (IRMAA). For single filers, IRMAA kicks in at $97,000 annual income; for married couples filing jointly, it starts at $194,000.

After you pay your premium, you also pay a deductible of $240 per year in 2025. Once you meet the deductible, Medicare covers 80 percent of most services, and you pay 20 percent. There is no out-of-pocket maximum under Original Medicare Part B, which means your costs can grow without limit if you have expensive ongoing care.

If you delay signing up for Part B after you first become may be able to access, you pay a permanent penalty of 10 percent of the standard premium for each full year you waited. That penalty stays on your bill for life, so waiting even two years adds 20 percent to your monthly cost forever.

Part D costs: prescription drug coverage

Part D premiums vary widely depending on which plan you choose and which drugs it covers. In 2025, average Part D premiums range from roughly $30 to $100 per month, but some plans cost more or less. The plan you pick determines which pharmacies you can use and which drugs are covered at what price.

When you fill prescriptions, you move through cost stages. First, you pay your monthly premium. Then you pay out-of-pocket until you reach your plan's deductible, which can be $0 to $545 in 2025. After that, you enter the initial coverage stage and pay a copay or coinsurance for each drug. Once your total 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.

If you do not sign up for Part D when you first become may be able to access, you pay a permanent penalty of 1 percent of the national average Part D premium for each month you were without coverage. That penalty is added to your premium every year you have Part D, so delaying enrollment is costly.

Income-Related Monthly Adjustment Amounts (IRMAA) and how they affect your bill

If your income is above certain thresholds, Medicare charges you higher premiums for Part B and Part D. These surcharges are called IRMAA, and they are based on your Modified Adjusted Gross Income (MAGI) from two years prior. In 2025, the income thresholds are $97,000 for single filers and $194,000 for married couples filing jointly. If your income exceeds these amounts, your Part B and Part D premiums increase in brackets.

For example, a single person with $110,000 in income pays more than the standard $174.70 Part B premium. The exact amount depends on how far above the threshold your income falls. IRMAA can add $70 to $350 per month to your Part B bill alone, depending on your income level.

You can request a review of your IRMAA if your income dropped due to retirement, loss of a spouse, or other life changes. Medicare uses your most recent tax return to recalculate, so if your 2024 income was lower than 2023, you may be able to reduce your 2025 surcharges by submitting proof of the change.

Medigap and Medicare Advantage: how they change what you pay

Medigap (supplemental insurance) covers costs that Original Medicare does not, such as the Part B deductible, coinsurance, and copays. Medigap plans are sold by private insurers, and premiums vary by plan type, your age, and your location. A basic Medigap plan might cost $100 to $200 per month, while more comprehensive plans cost $200 to $400 or more. Medigap does not cover prescription drugs, so you still need Part D.

Medicare Advantage (Part C) is an alternative to Original Medicare. It is run by private insurers and usually includes Part A, Part B, and Part D all in one plan. Medicare Advantage premiums are often lower than Original Medicare plus Medigap, sometimes $0 per month, but you pay copays and coinsurance when you use services. Out-of-pocket maximums under Medicare Advantage range from $4,500 to $7,550 in 2025, which means your costs are capped.

The choice between Original Medicare with Medigap and Medicare Advantage depends on your health, your doctors, and your prescription drugs. If you have a chronic condition and see the same doctors regularly, Original Medicare with Medigap may cost less overall. If you want predictable costs and do not mind using a network, Medicare Advantage may be cheaper.

Late enrollment penalties and how to avoid them

If you do not sign up for Medicare when you first become may be able to access, you pay permanent penalties. For Part B, the penalty is 10 percent of the standard premium for each full year you delayed. For Part D, the penalty is 1 percent of the national average premium for each month you were without coverage. These penalties stay on your bill for life, even if you switch plans later.

You become may be able to access for Medicare at 65, but the enrollment window starts three months before your 65th birthday and ends three months after. If you miss this window and do not have creditable coverage (such as employer health insurance), you pay the penalty. The only exceptions are if you have group health insurance through current employment or if you are a federal employee.

If you realize you missed the important date, you can request a Special Enrollment Period if you have a may have access to life event, such as losing employer coverage. Otherwise, you can enroll during the General Enrollment Period from January 1 to March 31 each year, but the penalty still applies.

Frequently Asked Questions

Does Medicare cost the same for everyone?

No. Part A premiums depend on your work history. Part B and Part D premiums increase if your income is above certain thresholds. Medigap and Medicare Advantage premiums vary by plan, age, and location. Your actual out-of-pocket costs also depend on which doctors and pharmacies you use and which drugs you take.

What if I can't afford my Medicare premiums?

You may be able to get help through Medicaid, the Medicare Savings Program, or the Low-Income Subsidy program for Part D. These programs are run by your state, and may be able to access is based on income and assets. Contact your state Medicaid office or call 1-800-MEDICARE to learn whether you may have access to.

Can I change my Medicare plan if costs go up?

Yes. You can switch Part D plans or Medicare Advantage plans during the Annual Enrollment Period from October 15 to December 7 each year. Changes take effect January 1. If you have a may have access to life event, such as loss of income or moving to a new state, you may be able to change plans outside the enrollment window.

Do I have to pay for preventive services?

No. Medicare covers preventive services such as annual wellness visits, cancer screenings, and vaccinations with no copay or coinsurance under Part B. You still pay your Part B premium and deductible, but the service itself is free once you meet the deductible.

What happens if I don't pay my Medicare premium?

If you do not pay your Part B or Part D premium, Medicare can disenroll you from that part. You then lose coverage and may face a gap in insurance. If you have trouble paying, contact Medicare to discuss payment plans or to see if you may have access to for financial help programs.