The Monthly Cost of Medicare Part B

Medicare Part B costs $174.70 per month in 2025 for most people who enroll. The amount changes each year — it was $164.90 in 2024 — and the Social Security Administration announces the new figure in the fall for the following year. If you have higher income, you pay more through a surcharge called an Income-Related Monthly Adjustment Amount (IRMAA).

The premium comes out of your Social Security check automatically if you receive benefits. If you don't receive Social Security, Medicare bills you directly. You also pay a yearly deductible ($240 in 2025) before Part B starts covering doctor visits and outpatient services, plus 20% coinsurance after that.

Part B covers doctor office visits, lab work, imaging, outpatient surgery, and some preventive care. It does not cover hospital stays (that's Part A) or prescription drugs (that's Part D). Many people buy a Medigap or Medicare Advantage plan on top of Part B to reduce out-of-pocket costs.

Key Takeaways

  • The standard Part B premium is $174.70 per month in 2025, but higher earners pay more through income-based surcharges.
  • You also owe a $240 yearly deductible and 20% coinsurance for most services after the deductible is met.
  • The premium amount changes annually and is announced each October for the following year.
  • If your income is above certain thresholds, you will receive a letter from Social Security showing your exact surcharge amount.

Income-Based Surcharges (IRMAA)

If your modified adjusted gross income (MAGI) exceeds a certain threshold, you pay a higher Part B premium. The thresholds depend on your filing status and are based on your income from two years prior. For 2025, single filers with MAGI over $97,000 and married couples filing jointly with MAGI over $194,000 face surcharges.

The surcharge tiers range from an extra $70 per month at the lowest tier to over $350 per month at the highest. Social Security sends you a notice if you owe IRMAA, and you have the right to request a review if your income dropped due to retirement, job loss, or divorce. A successful appeal can lower or eliminate the surcharge.

Your surcharge is based on your tax return from two years before the current year. If you retired mid-year or had a major life change, your current income may be much lower than what Medicare is using. Contact Social Security to request a recalculation with current-year figures.

When Part B Premiums Start and Stop

You start paying Part B premiums the month your coverage begins. If you enroll during your Initial Enrollment Period (the three months before, during, and after the month you turn 65), coverage starts the first day of your birth month. If you delay enrollment past that window, your coverage starts the first day of the month after you enroll, and you may owe a lifetime penalty of 10% per year of delay.

You stop paying Part B premiums when your coverage ends. If you drop Part B, you can rejoin only during the General Enrollment Period (January 1 to March 31 each year), with coverage starting July 1. Dropping and rejoining triggers the same late-enrollment penalty, so most people keep Part B once they start.

How Part B Premiums Compare to Out-of-Pocket Costs

The $174.70 monthly premium ($2,096 per year) is only the first piece of what you pay. After you meet the $240 deductible, Medicare covers 80% of most services and you pay 20%. A single doctor visit might cost $150 to $300 out-of-pocket; an imaging scan can run $200 to $500. Over a year, these costs add up quickly if you have chronic conditions or frequent appointments.

Many people buy a Medigap plan (also called Supplemental Insurance) to cover the 20% coinsurance and deductible. Medigap premiums range from $100 to $300+ per month depending on your age, location, and the plan letter you choose. Alternatively, you can enroll in a Medicare Advantage plan (Part C), which bundles Part A, Part B, and usually Part D into one plan with a different cost structure — often lower premiums but higher out-of-pocket maximums and network restrictions.

Changes to Part B Premiums Over Time

Part B premiums have risen steadily over the past decade. In 2015, the standard premium was $104.90; by 2024 it had reached $164.90. The increases reflect rising healthcare costs and are tied to the growth in Medicare spending. The Social Security Administration adjusts premiums annually based on a formula that accounts for program costs and the number of beneficiaries.

Income-based surcharges have also grown. In 2015, the highest IRMAA surcharge was roughly $70 per month; today it exceeds $350. As more people reach higher income thresholds and live longer in retirement, the number of beneficiaries paying surcharges has increased. If you are still working or have substantial retirement income, expect to pay more than the standard premium.

How to Find Your Exact Part B Cost

Your Social Security statement shows your Part B premium if you receive benefits. Log into your account at ssa.gov or call Social Security at 1-800-772-1213 to see your current premium and any surcharges. If you receive an IRMAA notice, it will itemize your surcharge and explain how to request a review.

Medicare.gov also displays premium amounts and allows you to estimate your costs under different plan options. You can compare the standard Part B premium against Medigap and Medicare Advantage plans to see which combination fits your budget and healthcare needs. If you are not yet on Medicare, you can use the Medicare Plan Finder tool to see what you would pay under each option.

Frequently Asked Questions

Can I reduce my Part B premium if my income drops?

Yes. If you retire, lose a job, or experience another major life event that lowers your income, you can request that Social Security recalculate your IRMAA surcharge using your current-year income instead of the two-year-old tax return. You must submit the request within 60 days of the event. Social Security will review your case and may reduce or eliminate the surcharge.

What happens if I don't pay my Part B premium?

If you miss a payment, Medicare sends a notice. If you don't pay within three months, your Part B coverage can be terminated. You can rejoin only during the General Enrollment Period (January through March), with coverage starting July 1. Late enrollment penalties explore if you rejoin after a gap, so contact Medicare when ready if you fall behind.

Is Part B premium the same in every state?

The standard Part B premium is the same nationwide. However, Medigap and Medicare Advantage premiums vary significantly by state and county because they are sold by private insurers. Your total out-of-pocket costs depend on where you live and which supplemental plan you choose.

Do I have to pay Part B if I'm still working?

Yes, if you are enrolled in Part B, you pay the premium regardless of employment status. However, if you are still working and covered by your employer's health plan, you may be able to delay Part B enrollment without penalty. You must have creditable coverage through your employer and enroll in Part B within eight months of losing that coverage.

Will my Part B premium increase every year?

Yes, the standard premium increases most years based on Medicare program costs. The amount of increase varies — some years it rises by $5 to $10, other years by $15 to $20 or more. Income-based surcharges also increase as income thresholds are adjusted for inflation. Social Security announces the new premium each October.