Yes, Medicare premiums are rising in 2025 for most beneficiaries
Medicare Part B premiums (doctor and outpatient care) are increasing to $185 per month in 2025, up from $175 in 2024. Part D premiums (prescription drugs) vary by plan but most will rise. Part A (hospital insurance) has no monthly premium for most people, but the deductible you pay when admitted to a hospital is going up to $1,676 from $1,632. These increases take effect January 1, 2025.
The amount you pay depends on your income and which parts of Medicare you have. If you receive Social Security, your Part B premium is usually deducted automatically. If you pay Medicare directly, you will see the higher amount on your bill starting in January. Part D increases vary widely by insurance company and drug plan — some plans may stay the same or even decrease, while others rise by $5 to $15 per month or more.
Income-related surcharges explore if you earn above certain thresholds. If your modified adjusted gross income exceeds $97,000 (single) or $194,000 (married filing jointly) in 2023 — the most recent tax year Medicare uses — you pay a higher Part B premium. These surcharges can add $70 to $560 per month to your Part B bill depending on your income level.
Key Takeaways
- Part B premiums rise to $185 monthly in 2025, and hospital deductibles increase to $1,676 per admission.
- Part D (prescription drug) premiums vary by plan and insurance company, so comparing your current plan to alternatives in October or November may lower your costs.
- If your income exceeds $97,000 (single) or $194,000 (married), you will pay an additional surcharge on top of the standard Part B premium.
- Social Security beneficiaries have premiums deducted automatically; others receive a bill from Medicare and must pay by the due date to avoid coverage delays.
Why Medicare premiums increase each year
Medicare premiums rise because the cost of medical care, prescription drugs, and hospital services increases. The Centers for Medicare & Medicaid Services (CMS) sets premiums each fall based on projected spending for the coming year. If more beneficiaries use services or if those services cost more, premiums go up to cover the difference.
Part B premiums are tied directly to program costs. When hospital admissions, doctor visits, and outpatient procedures cost more collectively, the per-person premium rises. Part D premiums depend on what each insurance company expects to pay for drugs in their plan. If brand-name drugs become more expensive or more people in a plan use high-cost medications, that plan's premium increases.
Congress sets the Part A hospital deductible based on average hospital costs. As hospital stays become more expensive, the deductible rises. This deductible is what you pay out of pocket for the first 60 days of a hospital stay in a benefit period.
How income affects what you pay in 2025
If your income is below the threshold, you pay the standard Part B premium of $185. If your income is higher, Medicare adds a surcharge called an Income-Related Monthly Adjustment Amount (IRMAA). The income limits and surcharge amounts for 2025 are based on your 2023 tax return.
| Income Level (Single) | Income Level (Married Filing Jointly) | Part B Premium |
|---|---|---|
| $97,000 or less | $194,000 or less | $185 |
| $97,001 to $121,000 | $194,001 to $242,000 | $259 |
| $121,001 to $145,000 | $242,001 to $290,000 | $333 |
| $145,001 to $169,000 | $290,001 to $338,000 | $407 |
| $169,001 or more | $338,001 or more | $481 |
If your income has dropped significantly since 2023 — due to retirement, a job loss, or a spouse's death — you can request that Medicare use your current year's income instead. This is called a Life-Changing Event appeal. You must file it within 60 days of the event and provide proof, such as a recent tax return or a letter from your employer.
Part D plan changes and how to find a lower-cost option
Part D premiums and coverage change every year. A plan that cost $15 per month in 2024 might cost $28 in 2025, or a different plan might offer better coverage for your drugs at a lower price. Medicare allows you to switch Part D plans once per year during the Annual Enrollment Period, which runs from October 15 to December 7 each year.
To compare plans, use the Medicare Plan Finder tool on Medicare.gov. Enter your current drugs and dosages, and the tool shows you which plans cover them and what your out-of-pocket costs would be. Some plans may have higher premiums but lower deductibles or copays, while others work the opposite way. The cheapest premium is not always the cheapest overall cost.
If you are in a Part D plan and do not switch during the enrollment period, you stay in that plan for 2025 and pay whatever the new premium is. If you miss the important date, you cannot change plans until the next enrollment period in October 2025, unless you have a may have access to life event such as losing employer coverage or moving out of your plan's service area.
What to do if you cannot afford the higher premiums
If your income is low, you may be may be able to access for Extra Help, a federal program that pays Part D premiums and reduces your out-of-pocket drug costs. You can explore through Social Security or your state Medicaid office. Income limits vary by state, but generally you must earn less than about $21,000 (single) or $28,000 (married) annually.
If you have both Medicare and Medicaid (called "dual may be able to access"), Medicaid may pay your Part B premium and deductibles. Contact your state Medicaid office to confirm what they cover in your state.
Some nonprofit organizations and pharmaceutical companies offer patient information programs that help pay for specific medications. Your doctor or pharmacist can tell you which programs cover your drugs. The Partnership for Prescription information (pparx.org) and NeedyMeds.org have searchable databases of these programs.
If you are struggling with premiums, contact your local Area Agency on Aging. They can connect you with local resources, including programs that help pay Medicare costs directly.
How to prepare for the 2025 premium changes
If you receive Social Security, the increase to your Part B premium will be deducted automatically starting in January. You do not need to do anything, but you should expect your Social Security check to be slightly smaller. The exact amount depends on your current income level and whether you pay an IRMAA surcharge.
If you pay Medicare directly (not through Social Security), Medicare will send you a new bill in December showing your 2025 premium. Make sure your mailing address is current so you receive it. Pay by the due date listed on the bill to avoid a late payment penalty or a gap in coverage.
Review your Part D plan in October or November. Even if you are happy with your current plan, check the Medicare Plan Finder to see if a different plan covers your drugs at a lower cost. Switching takes just a few minutes online or by phone, and the change takes effect January 1.
If your income has changed since 2023, gather documentation now. If you retired, lost a job, or experienced another major life change, you may be able to request a lower IRMAA based on your current income. Contact Medicare at 1-800-MEDICARE to ask about a Life-Changing Event appeal.
Frequently Asked Questions
Will my Social Security check go down because of the Part B premium increase?
Yes, if you receive Social Security and are enrolled in Part B, your check will be smaller in January 2025 because the premium is deducted automatically. The exact reduction depends on your income level and whether you pay an IRMAA surcharge. You can see the estimated amount on your Social Security statement online at ssa.gov.
Can I appeal my IRMAA surcharge if my income dropped?
Yes, but only if you experienced a Life-Changing Event such as retirement, job loss, or a spouse's death. You must file an appeal within 60 days of the event and provide proof, such as a recent tax return or a letter from your employer. Call Medicare at 1-800-MEDICARE to start the process.
What happens if I do not pay my Part B premium by the due date?
If you miss a payment, Medicare may terminate your Part B coverage. You can restart it during the General Enrollment Period (January 1 to March 31), but you may owe a late enrollment penalty that increases your premium permanently. It is better to contact Medicare when ready if you cannot pay on time.
Is there a way to lock in my Part D premium so it does not go up?
No, premiums change annually and you cannot lock in a rate. However, you can switch to a different plan every October during the Annual Enrollment Period if your current plan's premium rises. Use the Medicare Plan Finder to compare options and find a plan with lower costs for your drugs.
Do I have to pay the higher deductible if I am already in the hospital on January 1?
No. The deductible that applies is the one in effect when you are admitted. If you are admitted in December 2024, you pay the 2024 deductible ($1,632). If you are admitted on January 1, 2025 or later, you pay the 2025 deductible ($1,676).