Medicare costs are rising in 2025, and the increases vary by the type of coverage you have
Medicare costs change every year. In 2025, Part B premiums (doctor visits and outpatient care) are going up, Part D premiums (prescription drugs) are changing, and Part A deductibles (hospital stays) are higher. The exact amount you pay depends on your income, which plan you chose, and whether you get help paying premiums through a program like Extra Help or Medicaid.
This guide explains what the 2025 costs are, where the increases hit hardest, and what to do if your costs are going up more than you expected.
Key Takeaways
- Part B premiums for most people are $174.70 per month in 2025, up from $164.90 in 2024, and higher-income beneficiaries pay more.
- Part A hospital deductible is $1,676 per benefit period in 2025, up from $1,556 in 2024.
- Part D prescription drug costs vary by plan and pharmacy, so comparing plans during open enrollment can lower what you pay.
- If your income is below certain thresholds, you may pay little or nothing through Extra Help or Medicaid, even though standard premiums are rising.
- You can change plans between October 15 and December 7 each year to find lower costs for the coming year.
Part B premiums and what they cover
Part B covers doctor visits, lab work, imaging, and outpatient procedures. In 2025, the standard monthly premium is $174.70 for most people. That is an increase of $9.80 from 2024. If you have higher income, you pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard premium — sometimes significantly more.
IRMAA brackets are based on your Modified Adjusted Gross Income (MAGI) from two years prior. For 2025, if your MAGI was above $97,000 as a single filer or $194,000 as a married couple filing jointly (based on 2023 tax returns), you will pay extra. The additional amount ranges from $52.30 to $209.20 per month depending on your income level. If you had a major life event — like retirement, death of a spouse, or loss of income — you can ask Social Security to recalculate your IRMAA using current-year income.
Part A deductibles and hospital costs
Part A covers hospital stays, skilled nursing facility care, hospice, and some home health services. You do not pay a monthly premium for Part A if you or your spouse paid Medicare taxes for at least 10 years. However, you do pay a deductible when you use it.
In 2025, the Part A deductible is $1,676 per benefit period. A benefit period starts when you enter the hospital and ends 60 days after you leave without being readmitted. If you go back to the hospital after those 60 days, a new benefit period begins and you pay the deductible again. The coinsurance amounts — what you pay per day after the deductible — also increased: $419 per day for days 61–90 of a hospital stay, and $838 per day for days 91 and beyond.
Part D prescription drug premiums and coverage
Part D premiums vary widely depending on which plan you choose and which pharmacy you use. There is no single 2025 premium to quote — plans offered by different insurance companies range from roughly $7 to $100 per month or more. The average premium across all plans is typically in the $30–$50 range, but your actual cost depends on your plan choice.
Part D also has a coverage gap, sometimes called the "donut hole." Once you and your plan have spent $5,850 on covered drugs in 2025 (this threshold changes yearly), you enter the gap and pay a higher percentage of drug costs until you reach $7,550 in out-of-pocket spending. After that, catastrophic coverage kicks in and you pay only a small copay. If you have low income, you may pay nothing in the gap through Extra Help.
Part D plans change their formularies (the list of covered drugs) and premiums every year. Even if you liked your plan in 2024, the drugs it covers or the price it charges may be different in 2025. Comparing plans during open enrollment — October 15 to December 7 — can reveal significant savings, sometimes hundreds of dollars per year.
Supplemental insurance (Medigap) and Medicare Advantage premiums
If you have a Medigap policy (supplemental insurance sold by private insurers), the premium is set by the insurance company and varies by plan letter, your age, and your location. Medigap premiums are not set by Medicare, so there is no single 2025 figure. However, most Medigap insurers raise premiums annually, often by 3–8 percent. Contact your insurer directly to learn what your 2025 premium will be.
Medicare Advantage plans (Part C) often have $0 premiums, but some charge monthly premiums ranging from $10 to $300 or more. Like Part D, Medicare Advantage plans change their networks, copays, and premiums every year. If you are in a Medicare Advantage plan, your insurer should have sent you a notice of changes by September 30, 2024, showing what your 2025 costs will be.
Income-based help with premiums and out-of-pocket costs
Extra Help is a federal program that pays Part D premiums and reduces copays for people with limited income and resources. In 2025, you may be may be able to access if your income is below roughly $21,870 per year as a single person or $29,520 as a married couple (these figures are updated annually). If you may have access to, Extra Help covers your entire Part D premium and limits your copays to $1.15–$3.90 per prescription depending on the drug type.
Medicaid can help with Part A and Part B premiums, deductibles, and copays if your income and resources are low enough. Medicaid rules vary by state, so contact your state Medicaid office or call 211 to learn whether you may be covered. Some people are may be able to access for both Extra Help and Medicaid, which together can reduce your out-of-pocket costs to nearly zero.
The Medicare Savings Program (MSP) helps people with limited income pay Part B premiums, Part A deductibles, and copays. Income limits are higher than Extra Help — roughly $18,735 to $25,000 for a single person depending on which MSP tier you may have access to for. MSP is run by your state, so contact your state Medicaid office to learn how the process works.
What to do if your costs are going up
If your Part B premium jumped because of IRMAA, check whether you had a may have access to life event. Retirement, loss of income, death of a spouse, divorce, or loss of a pension can trigger a recalculation. Contact Social Security at 1-800-772-1213 with documentation of the event, and they can recalculate your IRMAA using current-year income instead of two-year-old tax returns.
If your Part D or Medicare Advantage costs are rising, use the Medicare Plan Finder tool at Medicare.gov to compare plans for 2025. You can enter your current medications and see which plans cover them and at what cost. Open enrollment runs from October 15 to December 7 each year, and any changes you make take effect January 1. If you miss the important date, you cannot change plans until the next open enrollment unless you have a may have access to life event.
If you think you may be may be able to access for Extra Help, Medicaid, or MSP, explore now rather than waiting. These programs can reduce your 2025 costs significantly, and some have waiting periods. You can explore online at SSA.gov for Extra Help, or contact your state Medicaid office for Medicaid and MSP.
Frequently Asked Questions
Will my Part B premium go up automatically in 2025?
Yes, unless you are already paying the maximum IRMAA amount. The standard premium is $174.70 in 2025. If you have higher income, your IRMAA may also increase. Social Security will notify you of your 2025 premium by December. If the increase seems wrong, contact Social Security to ask about a recalculation based on a recent life event.
Can I reduce my Part D costs if I cannot afford my medications?
Yes. Compare plans during open enrollment to find one that covers your drugs at a lower cost. If you have low income, explore for Extra Help, which can reduce your copays to $1.15–$3.90 per prescription. Some drug manufacturers also offer patient information programs for people who cannot afford their medications — ask your doctor or pharmacist whether your drugs may have access to.
What happens if I do not change my Medicare Advantage plan and costs go up?
You will pay the new premium and copays automatically starting January 1, 2025. You do not have to do anything to stay in your current plan. However, if you want to switch to a different plan with lower costs, you must do so during open enrollment (October 15 to December 7). After December 7, you cannot change plans unless you have a may have access to life event.
Do I have to pay the Part A deductible every time I go to the hospital?
Only once per benefit period. A benefit period lasts 60 days after you leave the hospital. If you return to the hospital after 60 days have passed, a new benefit period begins and you pay the deductible again. If you are readmitted within 60 days, you do not pay another deductible, but you may pay coinsurance.
How do I know if I may have access to for Extra Help or Medicaid?
Contact Social Security at 1-800-772-1213 to explore for Extra Help, or call 211 to be referred to your state Medicaid office. You will need to provide proof of income and resources. If you may have access to, the programs can start helping with your 2025 costs as soon as you are approved.