Medicare costs for 2025 have increased across all parts of the program

Medicare Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working, but you will pay a deductible when you go to the hospital. In 2025, that deductible is $1,676 per hospital stay. If you stay longer than 60 days, you pay a daily copay of $419 per day for days 61 through 90, and $838 per day for days 91 and beyond (up to 150 days total).

Medicare Part B (medical insurance) costs $174.70 per month for most people in 2025, though some higher earners pay more. You also pay a $240 annual deductible before Part B starts covering services, then 20% of the cost for most doctor visits and outpatient care after that.

Medicare Part D (prescription drug coverage) costs vary widely depending on which plan you choose, but the average monthly premium is around $34. You also pay out-of-pocket costs for medications that change based on which drugs you take and which tier your plan places them on.

Key Takeaways

  • Part A has no monthly premium for most people but charges $1,676 per hospital stay in 2025, plus daily copays if you stay longer than 60 days.
  • Part B costs $174.70 per month in 2025 for most people, with a $240 annual deductible and 20% copays for most services after that.
  • Part D prescription drug plans vary in cost but average around $34 monthly, with additional out-of-pocket costs depending on your medications.
  • If your income is above $97,000 (single) or $194,000 (married filing jointly), you pay higher premiums for Parts B and D.
  • Medigap and Medicare Advantage plans have their own costs and may cover some expenses that Original Medicare does not.

How income affects what you pay

If your modified adjusted gross income (MAGI) exceeds certain thresholds, Medicare charges you a higher premium called an Income-Related Monthly Adjustment Amount (IRMAA). For 2025, if you are single and earn more than $97,000 per year, or married filing jointly and earn more than $194,000, you will pay extra on top of the standard Part B and Part D premiums.

The income thresholds that trigger IRMAA are based on your tax return from two years prior. So your 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 premiums using current-year income instead.

What Original Medicare does not cover

Original Medicare (Parts A and B combined) does not cover dental care, vision exams, hearing aids, or most long-term care. It also does not cover routine eye exams, eyeglasses, or hearing tests. If you need these services, you either pay out of pocket or purchase a separate plan.

Many people add a Medigap policy (also called supplemental insurance) to cover some of the costs that Original Medicare leaves behind — like the Part B copays and deductibles. Medigap premiums vary by plan type and location but typically range from $100 to $300 per month. Alternatively, some people choose a Medicare Advantage plan instead of Original Medicare, which bundles hospital, medical, and often prescription drug coverage into one plan with different cost structures.

Medicare Advantage plan costs

Medicare Advantage plans (Part C) are an alternative to Original Medicare. Many have a $0 monthly premium, but you still pay the Part B premium to Medicare. However, you typically pay copays when you see a doctor or go to the hospital, and these copays are often higher than the 20% coinsurance in Original Medicare.

Most Medicare Advantage plans include prescription drug coverage built in, so you do not need to buy Part D separately. Some plans also cover dental, vision, or hearing services that Original Medicare does not. The trade-off is that you usually must use doctors and hospitals within the plan's network, and you may need prior approval from the plan before certain procedures.

Costs vary significantly by plan and location. In some areas, dozens of plans are available with different premium and copay structures. During the annual enrollment period (October 15 to December 7), you can compare plans side by side to see which one fits your budget and healthcare needs.

Out-of-pocket costs you should budget for

Beyond premiums and deductibles, Medicare has an out-of-pocket maximum for Original Medicare. Once you reach $8,700 in out-of-pocket costs for Part A and Part B services in a calendar year, Medicare covers 100% of your remaining costs for the rest of that year. However, this does not include Part D drug costs, which have their own spending limits.

For Part D, once you spend $5,030 out of pocket on covered drugs in 2025, you enter "catastrophic coverage" and pay only a small copay (around $3.50 for generic drugs and $8.75 for brand-name drugs) for the rest of the year. Between the initial deductible and catastrophic coverage, there is a gap called the "donut hole" where you pay a higher percentage of drug costs — this gap is shrinking each year by law.

If you have limited income, you may may have access to for Extra Help (also called the Low-Income Subsidy program), which covers some or all of your Part D premiums and out-of-pocket costs. You can check whether you may have access to through Medicare.gov or by calling 1-800-MEDICARE.

When costs change and how to prepare

Medicare costs change every January. The Social Security Administration announces the new premiums and deductibles in the fall, usually in October or November. If you are on Social Security, your Part B premium is typically deducted automatically from your check, and it adjusts on January 1.

If you are not yet on Social Security, you receive a bill from Medicare for your Part B premium. If you miss a payment, you may face a late enrollment penalty that increases your premium permanently. Part D also has a late enrollment penalty if you go without creditable drug coverage for more than 63 days in a row.

Every year during the annual enrollment period, review your coverage to see whether your current plan still makes sense. If your health needs or income have changed, a different plan might save you money. You can also request a new Medigap quote if you are on Original Medicare, since Medigap premiums can vary by insurer and plan.

Frequently Asked Questions

Do I have to pay Part B if I do not go to the doctor?

Yes. Part B is optional, but if you do not sign up when you first become may be able to access at 65, you will pay a 10% penalty on your premium for as long as you have Medicare. The only exception is if you are still working and covered by your employer's health plan — in that case, you can delay Part B without penalty.

What happens if I cannot afford my Medicare premiums?

If your income is low, you may may have access to for programs like Medicaid (which varies by state), the Medicare Savings Program, or Extra Help for Part D. Contact your state Medicaid office or call 1-800-MEDICARE to learn what programs you might be may be able to access for based on your income and assets.

Can I change my Medicare plan if costs go up?

Yes, during the annual enrollment period from October 15 to December 7 each year, you can switch between Original Medicare and Medicare Advantage, or change which Advantage or Medigap plan you have. Changes take effect January 1. Outside this window, you can only switch if you have a may have access to life event like moving or losing other coverage.

Are there any Medicare costs that are tax deductible?

Medicare premiums and out-of-pocket costs are not deductible on your federal income tax return unless you are self-employed, in which case you may deduct the Part B and Part D premiums (but not Medigap). Talk to a tax professional about your specific situation.

What if my income changes after I sign up for Medicare?

If your income drops significantly — because you retired, had a major life event, or lost a job — you can request that Medicare recalculate your IRMAA using your current income instead of your tax return from two years ago. You must submit a form and supporting documents within 60 days of the event. Contact Medicare at 1-800-MEDICARE to start the process.