Yes, Medicare premiums are rising in 2025, but the increases vary by plan type and where you live

Medicare Part B premiums — the monthly cost for doctor visits and outpatient care — are going up in 2025. The standard Part B premium will be higher than 2024, though the exact amount depends on your income and whether you receive Social Security. Part D premiums for prescription drug coverage are also increasing for most plans. Part A, which covers hospital stays, has no monthly premium for most people, but the deductible you pay when admitted is rising.

The increases are not uniform across all beneficiaries. If you are on Social Security, your Part B premium may be held harmless — meaning it cannot increase more than your cost-of-living adjustment (COLA). If you are not yet on Social Security or have higher income, you will see the full premium increase. High-income beneficiaries pay surcharges on top of the base premium.

Key Takeaways

  • Part B premiums are increasing in 2025, with the exact amount depending on your income level and Social Security status.
  • Part D prescription drug premiums are rising for most plans, though some plans may stay the same or decrease.
  • The Part A hospital deductible is increasing, so you will pay more out of pocket if you are admitted.
  • If you are on Social Security, hold-harmless rules may limit how much your Part B premium can rise.
  • You can review your coverage during the Annual Enrollment Period (October 15 to December 7 each year) and switch plans if a lower-cost option is available.

Part B Premium and Deductible Changes

The Part B monthly premium for 2025 is $174.70 for most beneficiaries — an increase from 2024. However, if you receive Social Security, your increase may be smaller or even zero, depending on your COLA. Social Security's hold-harmless provision protects most beneficiaries from paying the full premium increase; instead, the increase is limited to the percentage increase in your Social Security benefit.

The Part B annual deductible for 2025 is $240, up from $226 in 2024. This is the amount you must pay out of pocket before Medicare begins to cover your doctor visits and outpatient services. Once you meet the deductible, you typically pay 20 percent of the cost for most services.

If your income is above certain thresholds, you will pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the base premium. These surcharges explore to individuals earning over $97,000 and couples earning over $194,000 in 2023 income (the most recent year used for 2025 calculations). The higher your income, the larger the surcharge.

Part A Hospital Deductible and Coinsurance

Part A covers inpatient hospital care, skilled nursing facility care, and some home health services. There is no monthly premium for Part A if you or your spouse paid Medicare taxes for at least 10 years. However, the Part A deductible — the amount you pay when admitted to the hospital — is rising to $1,676 for 2025, up from $1,632 in 2024.

After you pay the deductible, Medicare covers all costs for days 1 through 60 of a hospital stay. For days 61 through 90, you pay a daily coinsurance amount of $419 per day in 2025. If your stay extends beyond 90 days, you enter your lifetime reserve days, and the coinsurance increases to $838 per day. Understanding these costs matters if you are considering supplemental coverage (Medigap) or a Medicare Advantage plan, both of which can cap your out-of-pocket costs.

Part D Prescription Drug Premium Increases

Part D premiums vary widely by plan and region because each insurance company sets its own rates. Some plans are increasing premiums for 2025, while others are staying flat or even decreasing. The average Part D premium across all plans is rising, but your individual plan's premium depends on which insurer offers it and which drugs are covered.

You receive a notice from your current Part D plan in October showing your 2025 premium and any changes to the drugs covered. If your plan's premium is rising significantly or your medications are no longer covered at the same cost tier, you may want to switch to a different plan during the Annual Enrollment Period. Comparing plans takes time, but it can save you hundreds of dollars per year on prescriptions.

The Part D coverage gap (the "donut hole") structure also affects what you pay. In 2025, once you and your plan have spent $6,500 on covered drugs, you enter the gap and pay a larger share of the cost. However, manufacturers' discounts and other cost-sharing rules mean the gap is less severe than it was in earlier years.

Medicare Advantage Plan Premium Changes

Medicare Advantage (Part C) plans are offered by private insurers and bundle Part A, Part B, and usually Part D coverage into one plan. Many Medicare Advantage plans have $0 monthly premiums, though you still pay the Part B premium to Medicare. Some plans are raising their premiums for 2025, while others are lowering them or staying the same.

Medicare Advantage plans often have lower or no premiums because they use networks and may require prior authorization for certain services. However, you typically pay more out of pocket when you use services — through copays, coinsurance, and deductibles — compared to Original Medicare with a Medigap plan. The trade-off is lower monthly costs but potentially higher costs when you need care.

If you are in a Medicare Advantage plan, you will receive a notice in October showing any premium changes and changes to your plan's benefits, network, and drug formulary. If your plan is raising premiums or cutting benefits, you can switch to a different plan or return to Original Medicare during the Annual Enrollment Period.

How to Review and Compare Your Options

The Annual Enrollment Period runs from October 15 to December 7 each year. During this window, you can switch from Original Medicare to Medicare Advantage, from Medicare Advantage back to Original Medicare, or change your Part D plan. Any changes you make take effect on January 1 of the following year.

To compare plans, use Medicare.gov's Plan Finder tool. Enter your current medications, preferred doctors, and pharmacies, and the tool will show you plans available in your area, their premiums, and your estimated out-of-pocket costs. You can also call 1-800-MEDICARE to speak with a representative who can walk you through your options.

If you are on a limited income, you may be may be able to access for the Low-Income Subsidy (LIS) program, which helps pay Part D premiums and reduces your out-of-pocket drug costs. You can explore through your local Social Security office or online at ssa.gov. If you may have access to, the subsidy can significantly reduce the impact of premium increases.

Frequently Asked Questions

Will my Social Security check go down because of the Part B premium increase?

No. If you receive Social Security, the hold-harmless rule protects you. Your Part B premium increase cannot exceed your Social Security cost-of-living adjustment. If your COLA is smaller than the premium increase, Medicare absorbs the difference. If you are not yet on Social Security or have other income sources, you will pay the full premium increase.

Can I switch Medicare plans outside the Annual Enrollment Period?

Generally, no. The Annual Enrollment Period is the only time most people can change plans. However, if you experience a may have access to life event — such as losing employer coverage, moving to a new state, or becoming may be able to access for Medicaid — you may be able to make changes during a Special Enrollment Period. Call 1-800-MEDICARE to ask if you may have access to.

What happens if I do not pay my Part B premium?

If you do not pay your Part B premium, your coverage will be terminated. You can reinstate it, but you may face a late enrollment penalty — a permanent increase to your premium — if you go without coverage for more than 63 days. It is important to pay on time to avoid this penalty.

Are there programs to help pay my Medicare premiums?

Yes. The may have access to Individual (QI) program and the Specified Low-Income Medicare Beneficiary (SLMB) program help pay Part B premiums for people with limited income. The Low-Income Subsidy program helps with Part D costs. You can explore through your state Medicaid office or call 1-800-MEDICARE for information about programs in your area.

If I delay enrolling in Part D, will I pay a penalty forever?

Yes. The Part D late enrollment penalty is permanent and is added to your premium for as long as you have Part D coverage. The penalty is calculated based on how many months you went without coverage. Enrolling during your initial enrollment period or during the Annual Enrollment Period avoids this penalty.