What's changing in your Medicare costs for 2025

Medicare Part B premiums are rising to $185 per month for most people in 2025, up from $174.70 in 2024. Part B deductibles are increasing to $240 per year, up from $226. Part D (prescription drug) premiums and deductibles vary by plan, but most will go up. Part A (hospital insurance) has no monthly premium for most people, but the hospital deductible is rising to $1,676 per stay, up from $1,632.

These increases happen every year because Medicare adjusts costs based on healthcare inflation and program expenses. The exact amount you pay depends on your income, which plan you chose, and whether you have other insurance. If you are on a fixed income, these changes matter — even small monthly increases add up over a year.

Key Takeaways

  • Part B premiums are rising to $185 monthly in 2025, and the deductible is increasing to $240 per year.
  • Part D prescription drug costs vary by plan, so you should review your current plan during open enrollment to see if a different one costs less.
  • If your income is above certain thresholds, you may pay higher premiums called Income-Related Monthly Adjustment Amounts (IRMAA).
  • Open enrollment runs from October 15 to December 7 each year, and changes take effect January 1.

How Part B premiums and deductibles work

Part B covers doctor visits, outpatient care, and some preventive services. The standard premium of $185 per month is deducted from your Social Security check if you receive benefits, or you pay it directly to Medicare if you do not. This is the amount most people pay — but if your income was above $97,000 (single) or $194,000 (married) in 2023, you will pay more.

The Part B deductible of $240 means you pay that amount out of pocket before Medicare starts to pay its share of covered services. After you meet the deductible, you typically pay 20 percent of the cost of most services, and Medicare pays 80 percent. The deductible resets every calendar year on January 1.

Part D prescription drug changes for 2025

Part D premiums and deductibles are set by individual insurance companies, not by Medicare as a whole, so they vary widely. Some plans are raising premiums by a few dollars; others are holding them steady or lowering them. The best way to know what you will pay is to review your current plan's 2025 rates during open enrollment.

Part D also has a coverage gap (sometimes called the "donut hole") where you pay more out of pocket for drugs in a certain price range. In 2025, this gap begins after you and your plan have spent $5,850 on covered drugs combined. Once you reach $7,050 in out-of-pocket costs, catastrophic coverage kicks in and you pay only a small copay for the rest of the year. These thresholds change annually.

Income-related premium increases (IRMAA)

If your income exceeds certain amounts, Medicare charges you a higher premium called an Income-Related Monthly Adjustment Amount. For 2025, if you are single and earned more than $97,000 in 2023, or married and earned more than $194,000, you will pay extra on top of the standard Part B and Part D premiums.

The income Medicare uses is from your tax return from two years prior — so 2025 premiums are based on 2023 income. If your income dropped because you retired or had a major life change, you can request that Medicare use your current income instead. You will need to contact Social Security or Medicare directly to file this request, called a Life-Changing Event appeal.

Medigap and Medicare Advantage premium changes

If you have a Medigap (supplemental insurance) policy, your premiums are set by the insurance company, not Medicare. Some companies raise rates annually; others hold them steady. Check your policy documents or call your insurer to learn what you will pay in 2025.

If you are in a Medicare Advantage plan (Part C), your monthly premium may change, and your copays and deductibles for services within the plan may also shift. Medicare Advantage plans must cover everything Original Medicare covers, but they set their own copays and networks. Review your plan's 2025 rates during open enrollment to see if you want to stay or switch.

When and how to review your coverage for 2025

Open enrollment for Medicare runs from October 15 to December 7 each year. During this window, you can switch from Original Medicare to Medicare Advantage, from Medicare Advantage back to Original Medicare, or change your Part D plan. Changes take effect January 1 of the following year.

To compare plans, use Medicare.gov's Plan Finder tool. Enter your zip code, current medications (if reviewing Part D), and doctors you see, and the tool will show you plans available in your area with their premiums, deductibles, and copays. You can also call 1-800-MEDICARE to speak with someone who can walk you through your options.

What to ask your doctor or Medicare counselor

Before open enrollment ends, ask your doctor if there are any changes to which insurance plans they accept in 2025. Some doctors drop plans or change their participation status. You want to confirm your preferred providers will still be in-network under your chosen plan.

If you are confused about your options or think you may may have access to for help paying premiums, contact your State Health Insurance information Program (SHIP). SHIP offers free counseling about Medicare coverage and can explain how the changes affect your specific situation. Find your state's SHIP by calling 1-800-MEDICARE or visiting shiptalk.org.

Frequently Asked Questions

Will my Social Security check go down because of the Part B premium increase?

No. Medicare adjusts the premium increase so that your net Social Security payment does not drop below what you received the previous month. This is called the "hold harmless" rule. However, if you do not receive Social Security, you will pay the full premium increase directly to Medicare.

Can I delay enrolling in Part B to avoid the premium increase?

Delaying Part B enrollment after you turn 65 can result in a permanent penalty — your premium will be 10 percent higher for each year you delayed. The premium increase for 2025 is temporary and happens every year, but a late-enrollment penalty is permanent, so delaying is usually not worth it.

What if I cannot afford the new premiums?

Medicare has programs to help people with limited income pay premiums and deductibles. These include the may have access to Individual (QI) program, Specified Low-Income Medicare Beneficiary (SLMB) program, and the Medicare Savings Program. Contact your state Medicaid office or call 1-800-MEDICARE to learn if you may have access to.

Do I have to switch plans during open enrollment?

No. If you do nothing, your current plan will continue into 2025 with its new rates. However, reviewing your options is worth the time — you may find a plan with lower premiums, better coverage for your medications, or doctors you prefer.

When do the 2025 premium changes take effect?

The new premiums and deductibles take effect January 1, 2025. If you make changes during open enrollment (October 15 to December 7, 2024), they will be in place by January 1. If you do not make changes, your current plan automatically continues with the new rates.