What's changing with Medicare costs in 2025
Yes, Medicare costs are increasing in 2025. The Part B premium — what you pay monthly for doctor visits and outpatient care — is rising to $185 per month for most people, up from $174.70 in 2024. The Part A deductible for hospital stays is going up to $1,676 per benefit period, from $1,632. The Part B deductible is rising to $240, from $231.
These increases happen every year. The amount depends on how much Medicare's costs grew the previous year and changes in Social Security payments. For 2025, the increases are larger than they were in 2024, but smaller than they were in 2023.
If you are on Original Medicare (Part A and Part B), you will see these changes reflected in your paychecks if you are still working, or deducted from your Social Security if you are retired. If you have a Medicare Advantage plan (Part C) or a Medigap policy, your costs may change differently depending on your plan and your insurance company.
Key Takeaways
- Medicare Part B premiums are increasing to $185 per month in 2025, and hospital and doctor visit deductibles are also going up.
- The amount of the increase varies by plan type — Original Medicare, Medicare Advantage, and Medigap all have different cost structures.
- If you receive Social Security, your Medicare premium is usually deducted automatically, so you will see the change in your payment amount.
- You can review your coverage during the Annual Enrollment Period (October 15 to December 7 each year) and switch plans if the new costs do not work for your budget.
How the increases affect Original Medicare
If you have Original Medicare, the premium increase means you will pay more each month starting January 1, 2025. Most people have their Part B premium taken directly from their Social Security check, so you will notice the difference right away when your payment arrives.
The deductible increases also matter. The Part A deductible applies once per benefit period when you go to the hospital — you pay the full amount before Medicare starts to help. The Part B deductible applies to doctor visits and outpatient services. If you see doctors regularly or have planned procedures coming up, these higher deductibles mean you will pay more out of pocket before your coverage kicks in.
Some people may have access to for Extra Help, a program that pays some or all of your Medicare premiums and deductibles if your income is low enough. If your income has changed since you last checked, you may now be may be able to access, or you may have lost may be able to access. You can contact your local Social Security office or call 1-800-772-1213 to ask whether you may have access to.
Medicare Advantage and Medigap plans in 2025
Medicare Advantage plans (Part C) are offered by private insurance companies and often have lower or no monthly premiums than Original Medicare, but they usually have higher deductibles and copays when you use care. In 2025, some plans will have lower premiums and some will have higher ones — it depends on the company and the specific plan. Many plans also change their copay amounts, which doctors they include in their network, and which medications they cover.
Medigap policies are supplemental insurance sold by private companies to cover the gaps in Original Medicare — things like deductibles and copays. Your Medigap premium will likely increase in 2025, but the amount depends entirely on your insurance company and the plan you chose. Some companies raise premiums by 3 to 5 percent, while others raise them by more.
Both types of plans can change their terms on January 1 each year. If your plan's new costs or coverage do not work for you, you have a window to switch during the Annual Enrollment Period.
When and how to review your coverage
The Annual Enrollment Period runs from October 15 to December 7 each year. During this time, you can switch from Original Medicare to a Medicare Advantage plan, from Medicare Advantage back to Original Medicare, change your Medigap policy, or switch to a different Medicare Advantage plan. Any changes you make take effect on January 1 of the following year.
You do not have to wait until October to learn what your new costs will be. In late September, Medicare mails a notice called the Medicare & You Handbook to everyone with Medicare. This handbook lists the new premiums and deductibles. You can also visit Medicare.gov and use their plan comparison tool to see what plans are available in your area and what they will cost you in 2025.
If you are thinking about switching plans, compare not just the monthly premium but also the deductible, copays, and which doctors and hospitals are in the network. A plan with a lower premium might cost you more overall if the copays are high or your doctor is not included.
What to ask your doctor or insurance company
Before the Annual Enrollment Period ends on December 7, talk to your doctor if you are considering switching plans. Ask whether your doctor is in the network of any Medicare Advantage plan you are thinking about joining. If your doctor is not in the network, you may have to pay more or switch doctors, which matters if you have a long-standing relationship or a complex medical condition.
If you take prescription medications, ask your pharmacy or insurance company whether your drugs are covered under the plan you are considering and what your copay will be. Medication coverage can change from year to year, and a plan that covered your drugs last year might not cover them the same way in 2025.
Call your current insurance company if you have questions about why your premium or copays are increasing. They can explain the changes specific to your plan and may be able to tell you about other plans they offer that might cost less.
Income-based help with Medicare costs
If your income is low, you may be able to get help paying your Medicare premiums and deductibles through Extra Help (also called the Low-Income Subsidy program) or your state's Medicaid program. Extra Help is a federal program, and Medicaid is run by each state, so what you may have access to for depends on where you live and how much money you make.
To find out whether you may have access to, contact your local Social Security office, call 1-800-772-1213, or visit your state's Medicaid office. You can also ask at a local senior center or aging services agency — they often have counselors who can help you figure out what you might be may be able to access for.
If you already receive Extra Help, your benefit amount may change in 2025 because the income limits and benefit amounts are adjusted each year. You do not have to reapply — Social Security will recalculate your benefit automatically. But if your income or household situation has changed, contact Social Security to update your information.
When to contact Medicare or your plan
Contact Medicare directly if you have questions about the premium or deductible increases for Original Medicare. You can call 1-800-MEDICARE (1-800-633-4227) and speak to a representative, or visit Medicare.gov to read more details about the 2025 changes.
If you have a Medicare Advantage or Medigap plan, contact your insurance company directly with questions about your specific plan's changes. The company should have sent you a notice in the mail explaining what is changing and why. If you did not receive a notice, call the customer service number on your insurance card.
If you are having trouble paying your Medicare costs and do not think you may have access to for Extra Help, ask your doctor's office or local hospital about financial information programs. Many hospitals have programs to help uninsured or underinsured patients pay for care.
Frequently Asked Questions
Will my Social Security check go down because of the Medicare increase?
No. If you receive Social Security, your benefit amount itself does not change because of the Medicare premium increase. Instead, the higher premium is straightforward deducted from your check, so you receive less in your hand. Your actual Social Security benefit stays the same.
Can I switch Medicare plans outside the Annual Enrollment Period?
Usually no, but there are exceptions. If you move to a new state, lose your current coverage, or have a major life change like losing a job or getting married, you may be able to switch plans outside the enrollment period. Call Medicare at 1-800-MEDICARE to ask whether your situation qualifies.
If I switch to a Medicare Advantage plan, can I switch back to Original Medicare later?
Yes, but only during the Annual Enrollment Period (October 15 to December 7) or if you have a may have access to life event. If you switch back to Original Medicare, you may not be able to buy a Medigap policy, or you may have to pay a higher premium, depending on your state and how long you were away from Original Medicare.
Do the 2025 increases explore to everyone on Medicare?
The Part B premium and deductible increases explore to most people, but some people pay a higher premium based on their income. If your income is above a certain threshold, you pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard premium. Medicare will tell you if this applies to you.
What if I cannot afford the new costs?
Talk to your doctor about your budget and ask whether there are lower-cost treatment options or generic medications you can use. Contact your state's Health Insurance Counseling and information Program (SHIP) — they offer free counseling to help you understand your options and find programs that might help pay your costs. You can find your state's SHIP by calling 1-800-MEDICARE.