Yes, Medicare Part B costs are rising in 2025

Medicare Part B premiums and deductibles increase most years, and 2025 is no exception. The standard monthly premium for Part B rises to $185 per month for most people, up from $177.90 in 2024. The annual deductible climbs to $240, up from $226 in 2024. These amounts are set by federal law each October and take effect January 1.

The exact amount you pay depends on your income. Higher earners pay surcharges called Income-Related Monthly Adjustment Amounts (IRMAA) on top of the standard premium. If you have low income, you may be able to get help paying Part B costs through Medicaid or the Medicare Savings Program, which varies by state.

The increases follow a pattern: Part B costs rise when Medicare's costs rise, and when the Social Security cost-of-living adjustment (COLA) rises. In 2025, Social Security benefits are rising 2.5 percent, which affects how much extra income-based surcharges will be.

Key Takeaways

  • The standard Part B premium for 2025 is $185 per month, and the deductible is $240 per year.
  • If your income is above certain thresholds, you will pay an additional surcharge on top of the standard premium based on your tax return from two years prior.
  • Medicaid and the Medicare Savings Program can help pay Part B premiums and deductibles if your income is low enough, and rules vary by state.
  • Part B costs usually increase each January based on Medicare spending trends and the Social Security COLA announcement.

How income affects what you pay in 2025

If your modified adjusted gross income (MAGI) from your 2023 tax return falls below $103,000 (single) or $206,000 (married filing jointly), you pay only the standard $185 monthly premium with no surcharge. MAGI is your adjusted gross income plus tax-exempt interest, and Medicare uses your tax return from two years back to set your surcharge.

Above those thresholds, you pay the standard premium plus an IRMAA surcharge that ranges from $69 to $560 per month depending on your income bracket. The surcharge tiers are: $103,001–$129,000 (single) adds $69; $129,001–$161,000 adds $173; $161,001–$193,000 adds $277; and $193,001 and above adds $560. For married couples filing jointly, the brackets are roughly double.

If your income drops during 2025 due to retirement, job loss, or divorce, you can request that Medicare recalculate your surcharge using your current year's income instead of your 2023 return. This is called a life-changing event appeal, and you must submit it within 60 days of the event.

What changed from 2024 to 2025

The Part B premium rose $7.10 per month (from $177.90 to $185), and the deductible rose $14 (from $226 to $240). These increases are smaller than some years — in 2022, the premium jumped $21.60 in a single year due to high inflation and increased use of Part B services.

The income thresholds for IRMAA surcharges also shifted upward slightly in 2025. The first surcharge tier now begins at $103,000 instead of $103,000 (no change), but the dollar amounts of the surcharges themselves increased by roughly 2.5 percent to match the Social Security COLA.

Part B does not have a yearly out-of-pocket maximum like Part D (prescription drugs) does. Once you meet the $240 deductible, Medicare covers 80 percent of approved services, and you pay 20 percent for the rest of the year. Costs can add up quickly for frequent doctor visits or procedures.

How to get help paying Part B costs

The Medicare Savings Program (MSP) pays your Part B premium, deductible, and coinsurance if your income is low enough. Income limits vary by state but typically range from about $1,500 to $2,000 per month for a single person. You explore through your state Medicaid office, not Medicare directly.

Medicaid also covers Part B premiums and cost-sharing for people who meet both Medicare and Medicaid rules. Medicaid income limits are lower than MSP limits and vary widely by state. Some states are more generous than others — contact your state Medicaid office to learn the exact threshold where you live.

If you cannot afford Part B, do not skip it. Delaying enrollment after you first become may be able to access triggers a permanent penalty of 10 percent per year you delay (with some exceptions for people still working). The penalty applies for life, so the cost of not signing up compounds over time.

When Part B costs take effect and how to prepare

The 2025 premium and deductible amounts take effect January 1, 2025. If you receive Social Security, the premium is usually deducted automatically from your monthly benefit. If you pay Medicare directly, you will receive a new bill showing the updated amount, typically in December 2024.

If you disagree with your surcharge amount or believe your income has changed, you have until March 31, 2025 to request a review. Submit a written appeal to your local Social Security office or call 1-800-MEDICARE. Include documentation of the income change (pay stubs, tax return, letter from employer) and explain why you think the surcharge is wrong.

If you are turning 65 in 2025 or newly may be able to access for Medicare, you have a seven-month enrollment window centered on your birthday month. Enrolling late without a valid reason triggers the permanent 10 percent penalty mentioned above, so do not delay.

Part B costs compared to other Medicare coverage

Part B is one piece of Medicare. Part A (hospital insurance) has no monthly premium for most people but has a deductible of $1,676 per benefit period in 2025. Part D (prescription drugs) has varying premiums by plan and a $575 deductible in 2025. Supplemental insurance (Medigap) and Medicare Advantage plans have their own premiums and cost-sharing structures.

If you are on a fixed income, the cumulative cost of all Medicare pieces matters. A person on both Part A and Part B with a Medigap plan or Medicare Advantage plan could pay $300 to $500 or more per month in premiums alone, before any actual medical care. Planning ahead and understanding which coverage fits your situation can reduce surprises.

Frequently Asked Questions

Will my Part B premium go up again in 2026?

Almost certainly, though the exact amount is not known until October 2025. Part B premiums have risen every year since 2009. The increase depends on Medicare spending trends and the Social Security COLA announcement, both of which are unpredictable.

Can I drop Part B if the premium is too high?

You can drop Part B, but you will face a permanent 10 percent penalty on your premium for every year you are not enrolled, even if you rejoin later. The only exceptions are if you are still working and covered by your employer's health plan, or if you have a valid reason to delay (such as coverage through a spouse's plan). Contact Social Security to discuss your situation before dropping.

What if I cannot afford the IRMAA surcharge?

You can request a review if your income has dropped since your 2023 tax return. Submit a written appeal within 60 days of the change (job loss, retirement, divorce, death of spouse). You will need to provide proof of the change. If your appeal is denied, contact your state Medicaid office about the Medicare Savings Program, which may help cover the surcharge.

Does the Part B deductible reset every January?

Yes. The $240 deductible resets on January 1 each year. Once you meet it, Medicare covers 80 percent of approved services for the rest of the calendar year. The deductible applies to Part B services only — Part A has its own separate deductible per benefit period.

How do I know if my income will trigger a surcharge in 2025?

Medicare uses your 2023 tax return to calculate your surcharge. If your 2023 MAGI was under $103,000 (single) or $206,000 (married filing jointly), you will not have a surcharge. If it was above those amounts, you will. You can request a recalculation if your income dropped in 2024 or 2025 due to a life-changing event.