Medicare premiums and deductibles for 2025

Medicare costs change every year. For 2025, Part B premiums (doctor visits and outpatient care) will be $174.70 per month for most people — up from $164.90 in 2024. The Part B deductible (the amount you pay before Medicare starts covering) is $240 for the year.

Part A (hospital stays) has no monthly premium for most people who paid Medicare taxes while working. If you need hospital care, you will pay $1,676 for the first 60 days of each hospital stay in 2025, up from $1,612 in 2024.

These numbers are set by Medicare each October and take effect January 1. Your actual costs depend on which parts of Medicare you have, whether you have a Medigap or Medicare Advantage plan, and your income level.

Key Takeaways

  • Part B premiums are $174.70 per month in 2025, and the Part B deductible is $240 per year.
  • Part A hospital deductible is $1,676 for the first 60 days of a hospital stay.
  • People with higher incomes pay higher Part B and Part D premiums through Income-Related Monthly Adjustment Amounts (IRMAA).
  • Medicare Advantage and Medigap plans have their own premiums and cost-sharing, which vary by plan and insurer.
  • Part D (prescription drug) premiums vary widely by plan, and the coverage gap (donut hole) threshold changes yearly.

How income affects what you pay

If your income is above a certain level, you pay more for Part B and Part D coverage through something called IRMAA — Income-Related Monthly Adjustment Amount. For 2025, if you are single and your modified adjusted gross income is above $97,000, you will pay a surcharge on top of the standard Part B premium. The surcharge increases in steps as your income rises.

Married couples filing jointly start paying IRMAA at $194,000 in income. The exact amount you pay depends on your income bracket — there are five tiers, and the highest earners pay roughly three times the standard premium.

Medicare uses your tax return from two years ago to calculate IRMAA. So 2025 premiums are based on your 2023 income. If your income dropped significantly in 2024 — because you retired, had a major life event, or lost income — you can request that Medicare recalculate your premium using current-year income instead.

Medicare Advantage and Medigap plan costs

If you choose Medicare Advantage (Part C), you get Part A and Part B coverage through a private insurer instead of original Medicare. Most Medicare Advantage plans have no monthly premium beyond the Part B premium you already pay to Medicare, though some plans charge an additional premium. You will have copays and coinsurance when you use care, and most plans have a yearly out-of-pocket maximum — in 2025, this cannot exceed $8,550 for in-network care.

Medigap plans are supplemental insurance sold by private companies. They help pay the costs that original Medicare does not cover — deductibles, copays, and coinsurance. Medigap premiums vary widely depending on the plan letter (Plan A, Plan B, Plan G, and so on), your age, your location, and the insurance company. A Plan G might cost $100 to $300 per month depending on where you live and your age.

Both Medicare Advantage and Medigap plans change their premiums and benefits each year. You can compare plans and switch during the Annual Enrollment Period, which runs October 15 to December 7 each year.

Part D prescription drug coverage costs

Part D premiums vary by plan and insurer. There is no single 2025 premium — you choose a plan, and each plan sets its own price. Some plans cost $5 per month; others cost $100 or more. The plan you choose also affects how much you pay for individual drugs.

In 2025, the Part D deductible can be up to $545 per year (you pay this before your plan starts helping). Once you and your plan have spent $6,435 on covered drugs, you enter the coverage gap — sometimes called the "donut hole" — where you pay a larger share of drug costs. After you spend $8,300 out of pocket, catastrophic coverage kicks in and you pay only a small copay for the rest of the year.

If you have a low income, you may pay reduced or no premiums and deductibles through the Low-Income Subsidy program. This program is run by Social Security, and you can learn more by calling Social Security at 1-800-772-1213.

What changes from year to year

Medicare costs rise most years because of inflation and changes in healthcare spending. The Part B premium increase from 2024 to 2025 was about 6 percent. Part A deductibles typically increase by a similar percentage.

The Part D coverage gap thresholds also shift yearly. In 2024, the gap started at $6,295; in 2025, it starts at $6,435. These numbers are tied to a formula that Medicare recalculates each year based on drug spending trends.

If you are on a Medicare Advantage or Medigap plan, your plan's premiums and benefits may change on January 1 each year. Some plans add or drop coverage for certain drugs or services. This is why reviewing your plan during the Annual Enrollment Period is important — a plan that worked well in 2024 might cost more or cover less in 2025.

How to find your specific costs

Your actual 2025 costs depend on which parts of Medicare you have, your income, your location, and the specific plan you choose. The official Medicare website, Medicare.gov, has a Plan Finder tool where you can enter your information and see premiums and out-of-pocket costs for Medicare Advantage and Part D plans in your area.

You can also call Medicare directly at 1-800-MEDICARE (1-800-633-4227) to ask about your specific situation. Representatives can tell you what you will pay based on your income and the plans available where you live.

If you receive a notice from Medicare or your plan about 2025 costs, read it carefully. It will show your new premium, any IRMAA surcharge, and changes to your deductible or out-of-pocket maximum. If something looks wrong, contact Medicare or your plan to ask questions.

Frequently Asked Questions

Will my Part B premium go up if I do not sign up on time?

If you delay Part B enrollment without a valid reason, you may pay a permanent 10 percent penalty on your premium for each year you were may be able to access but did not sign up. This penalty stays with you for life. If you have a valid reason for the delay — such as still working and covered by an employer plan — you may avoid the penalty.

Does Medicare cover the cost of my medications in the donut hole?

In the coverage gap, you pay a larger share of drug costs, but you are not paying 100 percent. Your plan covers some of the cost. The exact amount depends on your plan. Once you reach catastrophic coverage (after $8,300 out of pocket), your plan covers most costs and you pay only a small copay per drug.

Can I change my Medicare plan if costs go up too much?

Yes. You can switch Medicare Advantage, Medigap, or Part D 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 moving, losing other coverage, or a major change in income — you may be able to switch outside this window.

What if I cannot afford my Medicare premiums?

If your income is low, you may be able to get help paying premiums through Medicaid or the Medicare Savings Programs, which are run by your state. You can also ask about the Low-Income Subsidy for Part D. Contact your state Medicaid office or call 1-800-MEDICARE to learn what programs may be available in your state.

Are there any Medicare costs that do not go up every year?

Part A has no monthly premium for most people, and this does not change. However, the Part A deductible (what you pay for a hospital stay) does increase most years. Some Medicare Advantage plans have zero premium, though this can change year to year. Medigap Plan A and Plan B have lower premiums than other plans, but they also cover less.