2025 Medicare Premium Amounts
Medicare Part B premiums for 2025 will be $185 per month for most people who enroll. Part D (prescription drug coverage) premiums vary by plan but average around $34 to $40 per month, though some plans cost more and a few cost less. Part A (hospital insurance) has no monthly premium for most people, but you pay a deductible when you use it — $1,676 for an inpatient hospital stay in 2025.
These amounts are set each year by Medicare and announced in the fall. The Part B premium you pay depends on your income: if you earned more than $103,000 as a single filer in 2023, you pay a higher amount called an Income-Related Monthly Adjustment Amount (IRMAA). The income thresholds and premium amounts change annually.
If you have a Medigap or Medicare Advantage plan, your premiums may be different. Medigap plans are sold by private insurers and have their own pricing. Medicare Advantage plans (Part C) often have low or zero premiums but charge copays when you use services.
Key Takeaways
- Part B premiums are $185 per month in 2025 for standard enrollees, but higher earners pay more based on income from two years prior.
- Part D prescription drug premiums vary by plan and region, so comparing your options each year can save you money.
- Your Part A deductible for hospital stays is $1,676 in 2025, and you pay this once per benefit period, not per hospital visit.
- If you delayed enrolling in Medicare and now face a late penalty, that penalty stays on your record for as long as you have Medicare.
How Income Affects What You Pay
If your income in 2023 was above certain thresholds, Medicare uses that older income figure to set your 2025 premiums. For Part B, single filers earning more than $103,000 in 2023 pay a surcharge on top of the base $185 premium. Married couples filing jointly pay more if their 2023 income exceeded $206,000.
The surcharge brackets are steep: someone earning $130,000 to $145,000 as a single filer pays roughly $259 per month for Part B in 2025, while someone earning over $500,000 pays around $560 per month. Part D premiums also have income-based surcharges, though they are smaller than Part B's.
You can request that Medicare recalculate your premium if your 2024 income was significantly lower than your 2023 income — for example, if you retired mid-year or had a major drop in earnings. You must file a form called the Medicare Income-Related Monthly Adjustment Amount Life-Changing Event within 60 days of the event. Medicare will then use your 2024 income instead.
Part D Premiums and Plan Choices
Part D premiums depend entirely on which plan you choose, and they vary by region and by insurer. The same plan name from the same company can cost different amounts in different states. In 2025, some plans cost under $10 per month while others exceed $100, though most cluster between $30 and $50.
Your actual out-of-pocket cost for drugs also depends on your plan's formulary — the list of drugs it covers and at what price tier. A cheap premium plan might have high copays for the drugs you take, while a more expensive plan might cover them better. You should review your plan each year during the Annual Enrollment Period (October 15 to December 7), because plans change their premiums and drug lists every January.
If you have limited income, you may may have access to for Extra Help, a federal program that pays most or all of your Part D premium and reduces your copays. You can learn whether you may have access to by contacting Social Security or your local Area Agency on Aging.
Medigap and Medicare Advantage Premiums
Medigap plans (also called Supplement plans) are sold by private insurance companies and cover costs that Original Medicare does not — like copays, coinsurance, and deductibles. Medigap premiums in 2025 vary widely by plan letter (Plan A, Plan B, Plan G, and so on), by your age, by your location, and by the insurance company. A Plan G might cost $150 per month with one insurer and $220 with another, even in the same city.
Medicare Advantage plans (Part C) are an alternative to Original Medicare. They often have low or zero monthly premiums but require you to use doctors and hospitals in their network and to pay copays for each visit. Some Advantage plans include Part D drug coverage built in; others do not. Premiums for Advantage plans also vary by plan and region and change annually.
Both Medigap and Advantage plans can change their premiums and benefits each year. If you have either type of plan, you receive a notice in the fall showing your 2025 premium and any changes to coverage. You can switch plans during the Annual Enrollment Period.
Late Enrollment Penalties
If you did not enroll in Part B or Part D when you first became may be able to access, you may owe a permanent penalty on top of your regular premium. The Part B late penalty is roughly 10 percent of the base premium for each 12-month period you delayed, and it stays on your record for life. If you delayed for three years, you would pay about 30 percent extra every month forever.
The Part D late penalty is calculated differently: roughly 1 percent of the national average Part D premium for each month you went without coverage. In 2025, that works out to about $5 to $6 per month for each year you delayed, but the exact amount depends on when you enroll and what the national average premium was in the years you were uninsured.
You can avoid or reduce these penalties if you have a valid reason for the delay — for example, if you were still working and covered by an employer plan, or if you were not a U.S. citizen until after your initial enrollment period. You must provide documentation of the reason when you enroll.
When Premiums Are Deducted and How to Pay
If you receive Social Security, your Part B premium is automatically deducted from your monthly benefit. Your Part D premium is usually deducted the same way if you enroll in a plan that participates in the automatic deduction program — most do. If your plan does not, you receive a bill from the insurance company each month.
If you do not receive Social Security, you receive a bill from Medicare each month for Part B. You can pay by mail, by phone, or online through the Medicare website. Some people set up automatic bank withdrawals to avoid missing a payment.
If you miss a Part B or Part D premium payment, Medicare will send you a notice. You have a grace period to pay, but if you do not pay within a certain time, your coverage can be terminated. If your coverage ends, you may face a gap in coverage and owe a late penalty when you re-enroll.
Frequently Asked Questions
Will my Part B premium go up every year?
Part B premiums usually increase each year, but the amount varies. Medicare announces the new premium in the fall. The increase is tied to the cost of living adjustment (COLA) and to the overall cost of Medicare Part B services. Some years the increase is small; other years it is larger.
Can I reduce my Part D premium by switching plans?
Yes. Part D premiums vary significantly by plan and region. During the Annual Enrollment Period (October 15 to December 7), you can switch to a different plan with a lower premium. Compare plans using the Medicare Plan Finder tool on Medicare.gov to see which plans cover your drugs at the lowest total cost.
What happens if I can't afford my Medicare premiums?
If your income is low, you may may have access to for Medicaid, which can pay your Part B and Part D premiums. You can also ask Medicare about the may have access to Individual (QI) program, which helps pay Part B premiums for people with limited income. Contact your state Medicaid office or your local Area Agency on Aging to learn what programs you may be able to use.
Do I have to pay premiums if I'm still working?
If you are still working and covered by your employer's health plan, you can delay enrolling in Medicare Part B without a penalty. You must enroll within eight months of leaving your job or losing your employer coverage, or you will owe a late penalty. Part D has different rules — you should enroll when you lose drug coverage, even if you delay Part B.
How do I know if my income will trigger an IRMAA surcharge?
Medicare uses your tax return from two years ago to calculate IRMAA. If your 2023 income was above $103,000 (single) or $206,000 (married filing jointly), you will pay a surcharge in 2025. You can check the income thresholds on Medicare.gov or call 1-800-MEDICARE to ask what your 2025 premium will be based on your specific income.