The 2025 Medicare Premium and Deductible Increases

Medicare Part B premiums are rising to $185 per month in 2025, up from $174.70 in 2024. The Part B deductible is increasing to $240, up from $226. Part D (prescription drug coverage) premiums vary by plan, but the average is expected to rise slightly. These increases are tied to Social Security's cost-of-living adjustment (COLA), which was 2.5% for 2025.

Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working. However, the Part A deductible — what you pay before hospital coverage kicks in — is rising to $1,676 per stay in 2025, up from $1,632 in 2024. If you need a hospital stay lasting more than 60 days, your copay per day also increases.

Medigap (supplemental insurance) and Medicare Advantage plan premiums are set by individual insurers, not by Medicare, so increases vary widely by plan and location. Some plans may stay flat while others rise 5% to 10% or more. You will need to check your specific plan's 2025 rates when your insurer sends your renewal notice, usually in October or November.

Key Takeaways

  • Part B premiums rise to $185 monthly and the deductible to $240 in 2025, affecting everyone on standard Medicare.
  • Part A hospital deductibles jump to $1,676 per stay, and daily copays increase for hospital stays longer than 60 days.
  • Part D prescription drug premiums vary by plan; check your insurer's notice to see your 2025 rate.
  • Medigap and Medicare Advantage premiums are set by individual insurers and can rise by different amounts depending on your plan and state.
  • Income-based Part B premium surcharges (IRMAA) also increase in 2025 if your income exceeds certain thresholds.

How Income Affects Your Part B Premium in 2025

If your modified adjusted gross income (MAGI) exceeds $97,000 as a single filer or $194,000 as a married couple filing jointly, you pay a surcharge on top of the standard Part B premium. These income thresholds are based on your tax return from two years prior — so your 2025 surcharge is based on your 2023 income.

The surcharge tiers in 2025 are higher than in 2024. A single person with MAGI between $97,001 and $121,000 pays an extra $59.40 per month. At the highest tier (MAGI over $500,000 for singles), the surcharge reaches $236.10 per month on top of the base premium. Married couples have different thresholds and surcharge amounts.

If your income drops significantly — due to retirement, a job loss, or a major life event — you can request that Medicare recalculate your surcharge using your current year's income instead of the two-year-old tax return. This is called an Income-Related Monthly Adjustment Amount (IRMAA) appeal. You must file it within 60 days of receiving your premium notice.

Part D Prescription Drug Changes for 2025

Part D plans change their formularies (the list of drugs they cover) and cost-sharing every year. In 2025, some drugs may move to a higher cost tier, meaning you pay more out of pocket. Others may be removed from coverage entirely, though Medicare rules require plans to cover at least two drugs in each therapeutic category.

The Part D out-of-pocket spending threshold — the point at which catastrophic coverage kicks in — is $8,550 in 2025, up from $8,100 in 2024. Once you reach this amount, you pay only a small copay (usually $3.95 to $9.85 per drug) for the rest of the year. However, you must reach this threshold through your own spending; premiums do not count toward it.

If you take expensive medications, review your plan's 2025 formulary before January 1. You can switch to a different Part D plan during the Annual Enrollment Period (October 15 to December 7 each year) if your current plan's costs are rising too much. Use the Medicare Plan Finder tool on Medicare.gov to compare plans side by side.

Medicare Advantage Plan Costs in 2025

Medicare Advantage (Part C) plans bundle Part A, Part B, and usually Part D into a single plan run by a private insurer. Premiums, deductibles, and copays vary widely by plan and location. Some plans have $0 premiums but higher copays; others charge a monthly premium but have lower out-of-pocket costs.

In 2025, many Medicare Advantage plans are adding or raising copays for doctor visits, specialist visits, and emergency room care. Some plans are narrowing their networks, meaning fewer doctors and hospitals are in-network. Others are expanding benefits like dental, vision, or fitness programs to compete for enrollment.

If you are in a Medicare Advantage plan, your insurer will mail you a notice of changes by September 30, 2024, showing your 2025 rates and any changes to coverage. Review this notice carefully. If the changes are unacceptable, you have until December 7, 2024, to switch to a different Medicare Advantage plan or to Original Medicare plus a Medigap plan.

Medigap Premium Increases and Plan Availability

Medigap (supplemental insurance) premiums are set by each insurance company, not by Medicare. Increases in 2025 depend on your insurer, your plan letter (Plan A, Plan B, Plan G, and so on), and your state. Some insurers may raise premiums 3% to 5%; others may raise them 8% to 12% or more.

Medigap plans are standardized by the federal government, so Plan G from one insurer covers the same benefits as Plan G from another. The difference is price. If your current insurer's 2025 rate is too high, you can shop around and switch to a cheaper insurer offering the same plan letter. However, if you have been on your current plan for more than six months and you have a pre-existing condition, the new insurer can deny you or charge you more.

The best time to lock in a Medigap rate is when you first turn 65 and enroll in Medicare Part B. At that point, insurers cannot deny you or charge more based on health status. If you missed that window, you can still switch plans, but shop carefully and compare quotes from at least three insurers before deciding.

What to Do When You Receive Your 2025 Medicare Notice

In late September or early October 2024, Medicare will mail you a notice showing your 2025 premiums, deductibles, and any changes to your coverage. Read this notice carefully, even if nothing seems to have changed. Mistakes happen, and you have a limited window to correct them.

If you are on Original Medicare (Part A and Part B), check that your Part B premium and deductible are correct. If you have Part D, verify that your plan is still available and that your drugs are still covered at the same cost tier. If you are on Medicare Advantage or Medigap, confirm that your plan is still offered in your area and that the premium and copays match what you expected.

If you find an error, contact Medicare at 1-800-MEDICARE (1-800-633-4227) or log into your account at Medicare.gov. If you disagree with an income-based surcharge, file an IRMAA appeal within 60 days of receiving your notice. If your plan's 2025 costs are unacceptable, you have until December 7, 2024, to make changes during the Annual Enrollment Period.

Frequently Asked Questions

Why does my Part B premium go up every year?

Part B premiums are adjusted each year based on the expected cost of doctor visits, outpatient services, and other Part B-covered care. The adjustment is tied to Social Security's cost-of-living adjustment (COLA), but it can also reflect changes in healthcare costs and Medicare's trust fund balance. In some years, premiums stay flat or even decline if healthcare costs are lower than expected.

Can I avoid the income-based surcharge by lowering my income?

The surcharge is based on your tax return from two years prior, so you cannot avoid it by earning less in the current year. However, if you have a major life event — such as retirement, a job loss, or a large one-time gain — you can file an IRMAA appeal to have Medicare recalculate your surcharge using your current year's income. You must file within 60 days of receiving your premium notice.

What happens if I do not pay my Medicare premium?

If you do not pay your Part B premium, Medicare will send you a bill and a grace period notice. If you do not pay within three months, your Part B coverage will end. You can restart it, but you may face a late enrollment penalty that increases your premium permanently. It is best to pay on time or contact Medicare to set up a payment plan if you are having trouble.

Can I switch plans during the year if my costs are too high?

No, not for most plans. The Annual Enrollment Period runs from October 15 to December 7 each year, and that is when you can make changes. However, if you have a may have access to life event — such as moving, losing employer coverage, or becoming may be able to access for Medicaid — you may be able to make changes outside the enrollment period. Contact Medicare to ask about your specific situation.

How do I know if my 2025 plan is still available in my area?

Your insurer will tell you in the notice they mail you in September or October. If your plan is being discontinued, they will offer you alternative plans or automatically enroll you in a similar plan. You can also check Medicare.gov or call 1-800-MEDICARE to search for plans available in your zip code for 2025.