Medicare Part A and Part B premiums for 2025

Most people do not pay a Part A premium in 2025 if they or their spouse paid Medicare taxes for at least 10 years while working. If you do not meet that requirement, the premium ranges from $278 to $556 per month, depending on how many quarters of work history you have.

Part B premiums in 2025 start at $185 per month for most people. However, if your income is higher, you pay more through a system called Income-Related Monthly Adjustment Amounts (IRMAA). The income thresholds that trigger higher premiums are based on your tax return from two years prior — so 2025 premiums use your 2023 income.

Part B also has an annual deductible of $240 in 2025, which you pay out of pocket before Medicare starts to cover doctor visits and outpatient services.

Key Takeaways

  • Part A premiums are free for most people who worked and paid Medicare taxes for 10 years; Part B premiums start at $185 per month in 2025.
  • If your income exceeds certain thresholds, you pay a higher Part B premium based on your tax return from two years before.
  • Part B has a $240 annual deductible in 2025, and you pay 20 percent of most services after you meet it.
  • Part D (prescription drug) premiums vary by plan and insurance company, ranging from roughly $7 to $100+ per month.
  • Medigap and Medicare Advantage plans have their own premiums separate from Part A and Part B.

How income affects what you pay for Part B

If your modified adjusted gross income (MAGI) from your 2023 tax return falls above certain thresholds, Medicare charges you a higher Part B premium. For 2025, single filers with income over $97,000 and married couples filing jointly with income over $194,000 start paying more.

The higher amounts increase in steps as your income rises. A single person with MAGI between $97,001 and $122,000 pays $259 per month instead of $185. At the highest income level (over $500,000 for singles, over $1 million for couples), the Part B premium reaches $560 per month. These amounts change each year.

Medicare uses your most recent tax return automatically, so you do not need to report your income separately. However, if your income dropped significantly in 2024 — because you retired, had a major loss, or experienced a life event — you can request that Medicare use your current year income instead. You must file a form called the Income Related Monthly Adjustment Amount Life-Changing Event within 60 days of the event.

Part D prescription drug premiums and coverage

Part D premiums vary widely because they are set by private insurance companies, not Medicare. In 2025, premiums typically range from about $7 to $100+ per month, depending on which plan you choose and which drugs it covers. You can view the exact premium for each plan available in your area through Medicare.gov's Plan Finder tool.

Part D also includes a deductible (usually $545 in 2025, though some plans have no deductible), and you pay different amounts at different stages of coverage. After you reach a certain out-of-pocket spending threshold, you enter the "catastrophic coverage" phase, where Medicare covers most of your drug costs for the rest of the year.

You must enroll in Part D when you first become may be able to access, or during the annual Open Enrollment Period (October 15 to December 7). If you delay without a valid reason, you may face a permanent penalty added to your premium.

Medigap and Medicare Advantage premiums

If you choose Medigap (supplemental insurance), you pay a separate premium to a private insurance company on top of your Part B premium. Medigap premiums in 2025 vary by plan type, your age, your location, and the insurance company. A basic plan might cost $100 to $150 per month, while more comprehensive plans can cost $200 to $400+ per month.

Medicare Advantage plans (Part C) often have lower or zero premiums, but you still pay your Part B premium to Medicare. Many Advantage plans include prescription drug coverage (Part D) built in, so you do not buy Part D separately. However, Advantage plans typically have copays, coinsurance, and network restrictions that differ from Original Medicare.

Both Medigap and Medicare Advantage premiums can change year to year, and you can switch plans during the annual Open Enrollment Period or during the Medicare Advantage Open Enrollment Period (January 1 to March 31).

What the deductibles and cost-sharing mean in practice

After you pay the Part B deductible ($240 in 2025), Medicare covers 80 percent of most doctor visits, lab work, and outpatient procedures. You pay the remaining 20 percent, which is called coinsurance. There is no annual cap on how much you pay out of pocket for Part B services under Original Medicare, which is why many people buy Medigap to cover that 20 percent.

Part A (hospital insurance) has a different structure. You pay a deductible of $1,868 per hospital stay in 2025, then Medicare covers all inpatient hospital costs for days 1 through 60. Days 61 through 90 require a daily copay of $467. If you stay longer than 90 days, you can use your "lifetime reserve days," which have a higher daily copay.

Skilled nursing facility care (after a hospital stay) is covered at 100 percent for days 1 through 20, then you pay a daily copay of $233.50 for days 21 through 100. After day 100, you pay all costs yourself.

When premiums increase and how to prepare

Medicare announces premium amounts for the following year in late September or early October. Part B and Part D premiums can change annually based on inflation, program costs, and other factors. Part A premiums also adjust each year.

If you receive Social Security, your Part B premium is usually deducted automatically from your check. If your premium increases, Social Security applies a "hold harmless" rule that protects most beneficiaries — your benefit cannot decrease even if the premium goes up. However, this protection does not explore if you are newly enrolled in Medicare or if you did not receive Social Security in the previous year.

If you pay your Part B premium directly (not through Social Security), Medicare sends you a bill. If you think your income-based premium is wrong, or if your income has changed significantly, contact Social Security or Medicare to request a review.

Frequently Asked Questions

Do I have to pay Part B premium if I am still working?

If you are still employed and your employer has 20 or more employees, you can delay Part B enrollment without penalty. However, you must enroll within eight months of leaving that job or losing employer coverage, or you will face a permanent premium increase. Part A is usually free regardless of employment status.

What happens if I cannot afford my Medicare premiums?

If your income is low, you may be able to get help through Medicaid or the Medicare Savings Programs (MSP), which are run by your state. These programs can pay some or all of your Part A and Part B premiums. Contact your state Medicaid office or call 1-800-MEDICARE to learn whether you may have access to.

Can I change my Part D plan if the premium goes up?

Yes. During the annual Open Enrollment Period (October 15 to December 7), you can switch to a different Part D plan with a lower premium or better coverage for your drugs. Changes take effect January 1. You can also switch if you experience a may have access to life event like loss of employer coverage.

Why does my Part B premium depend on my income from two years ago?

Medicare uses a two-year lag to base income-related premiums on your most recent tax return available. This means 2025 premiums use 2023 tax data. If your income dropped in 2024, you can request that Medicare use your current year income instead by filing a Life-Changing Event form within 60 days of the change.

Are there any months when I do not have to pay Part B premium?

No. Part B premiums are charged every month you are enrolled, even if you do not use Medicare services. The only way to stop paying is to disenroll from Part B, which is rarely advisable because you will face a permanent penalty if you re-enroll later.