Medicare Part A and Part B premiums for 2025

Most people do not pay a monthly premium for Medicare Part A (hospital insurance) if they or their spouse paid Medicare taxes for at least 10 years while working. If you do not meet that requirement, the premium ranges from about $278 to $556 per month in 2025, depending on how many quarters of coverage you have.

Medicare Part B (medical insurance) has a monthly premium that most people pay. For 2025, the standard Part B premium is $185 per month. However, if your income was above a certain level in 2023, you will pay more — this is called an Income-Related Monthly Adjustment Amount (IRMAA). The higher amounts range from $259 to $560 per month depending on your income level.

Part B premiums are usually taken directly from your Social Security check. If you are not yet receiving Social Security, Medicare will bill you monthly.

Key Takeaways

  • Most people pay $185 per month for Part B in 2025, but higher earners pay between $259 and $560 per month based on their 2023 income.
  • Part A is free for most people who worked and paid Medicare taxes for at least 10 years; others pay $278 to $556 per month.
  • If you have other income sources like pensions, investments, or rental income, your Part B premium may be higher due to income-related adjustments.
  • Part D (prescription drug) and Medigap premiums vary by plan and location, so your total monthly cost depends on which coverage you choose.
  • You can request a review of your income-related premium if your income dropped due to retirement, job loss, or death of a spouse.

How income affects what you pay

Medicare uses your Modified Adjusted Gross Income (MAGI) from your tax return from two years ago to calculate Part B premiums. For 2025 coverage, Medicare looked at your 2023 tax return. This means your 2025 premium is based on income you earned in 2023, not what you are earning right now.

Income includes wages, self-employment income, interest, dividends, rental income, and taxable Social Security benefits. If you were married and filed jointly in 2023, both spouses' income counts toward the threshold, even if only one of you is on Medicare.

The income thresholds for 2025 start at $103,000 for single filers and $206,000 for married couples filing jointly. Once your income exceeds these amounts, your Part B premium increases in steps. Someone earning $150,000 as a single filer pays more than someone earning $103,000, and the difference grows as income rises.

Part D and Medigap premiums

Medicare Part D (prescription drug coverage) premiums vary widely because they are set by private insurance companies, not Medicare. In 2025, Part D premiums range from roughly $10 to $100 per month depending on the plan and your location. Some plans cost more upfront but have lower costs when you fill prescriptions; others have lower premiums but higher out-of-pocket costs at the pharmacy.

Medigap (supplemental insurance) premiums also vary by insurance company, your age, and your location. A Medigap plan might cost anywhere from $100 to $300 or more per month. Medigap helps pay the costs that Original Medicare does not cover, such as copayments and coinsurance.

If you choose Medicare Advantage (Part C) instead of Original Medicare, you still pay your Part B premium, but the Advantage plan premium is often $0 to $50 per month. However, Advantage plans typically have network restrictions and higher out-of-pocket limits than Original Medicare with Medigap.

When premiums increase and how to plan

Part B premiums increase each year based on a formula set by law. The increase for 2025 was about 8 percent compared to 2024. You will receive a notice in the mail (called the Initial Enrollment Notice) in October or November each year showing your premium for the following year.

If your income dropped significantly in 2024 or 2025 — because you retired, lost a job, or experienced a death in your family — you can request that Medicare recalculate your income-related premium. You must file a form called the Medicare Income-Related Monthly Adjustment Amount — Life-Changing Event (form SSA-44) with Social Security within 60 days of the event. Providing recent tax returns or other income documentation can lower your premium when ready rather than waiting for the next year's adjustment.

What to ask your doctor or Medicare

Before you enroll or make changes to your coverage, ask Medicare or your insurance broker: What is my total monthly cost if I choose Original Medicare with Medigap versus Medicare Advantage? Which prescription drugs I take regularly are covered under each plan's Part D formulary, and at what cost tier? If my income changed this year, can I request a recalculation of my Part B premium?

You can also call 1-800-MEDICARE to speak with a representative who can explain your options based on your specific income and health needs. They can tell you which plans are available in your zip code and what the actual premiums are for each one.

Frequently Asked Questions

Will my Part B premium go up if I work past 65?

Your Part B premium is based on your income from two years ago, so if you are working now, your premium will not change until two years later when that income appears on your tax return. If your income is high enough to trigger an income-related adjustment, you will pay more starting the year after your tax return shows that higher income.

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

Yes. If you retired, lost a job, or experienced another major life change that reduced your income in 2024 or 2025, you can request a recalculation. Contact Social Security with documentation of the change, and they can adjust your premium right away instead of waiting for the next annual adjustment.

What happens if I do not pay my premium?

If you do not pay your Part B premium, Medicare will send you a notice and give you a grace period to pay. If you do not pay within the grace period, your coverage can be terminated. You can restart coverage during the next General Enrollment Period (January 1 to March 31), but you may face a permanent penalty on your premium.

Do I have to pay income-related premiums forever?

No. Income-related adjustments are recalculated each year based on your most recent tax return. If your income drops below the threshold in a future year, your premium will return to the standard amount. You can also request a review if a major life event changes your income.

Are there programs that help pay Medicare premiums?

Yes. Medicare Savings Programs run by your state can help pay Part A and Part B premiums if your income is low enough. Extra Help (Low-Income Subsidy) can reduce Part D premiums if you may have access to. Contact your state Medicaid office or call 1-800-MEDICARE to learn whether you may be may be able to access.