Yes, Medicare premiums are increasing in 2025 for most people

Medicare Part B premiums (which cover doctor visits and outpatient care) and Part D premiums (which cover prescription drugs) both rise each year. For 2025, Part B premiums increased, and Part D premiums vary by plan. Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working, though the deductible you pay when admitted to the hospital also went up.

The exact amount you pay depends on your income, which plan you chose, and whether you switched plans during the open enrollment period that ended December 7, 2024. If you did not make changes, your plan automatically renewed for 2025 at the new rates.

The increases are tied to a formula Congress set: Medicare adjusts premiums based on the cost of medical care and prescription drugs in the previous year. These are not surprise charges — they are announced in the fall, and you receive a notice in the mail showing your new premium before January 1.

Key Takeaways

  • Part B premiums increased for 2025, and the amount depends on your income level and whether you are subject to income-related adjustments.
  • Part D premiums vary by plan and pharmacy, so comparing plans during open enrollment can lower what you pay for drugs.
  • If you did not change your plan during open enrollment (which ended December 7, 2024), your current plan renewed automatically at the new 2025 rates.
  • You should have received a notice in the mail by December showing your new premium amounts; if you did not, contact Medicare at 1-800-MEDICARE.

How Part B premiums are set and who pays more

Part B premiums are not the same for everyone. If your modified adjusted gross income (MAGI) from two years ago was below a certain threshold, you pay the standard premium. If your income was higher, you pay an income-related monthly adjustment amount (IRMAA) on top of the standard premium.

For 2025, the income thresholds that trigger IRMAA are higher than they were in 2024, which means some people who paid extra in 2024 may not pay extra in 2025. Medicare uses your 2023 tax return to calculate this, so if your income dropped in 2023 compared to 2022, you may see a lower premium. If your income rose, your premium will be higher.

You can request that Medicare recalculate your IRMAA if your income changed significantly in 2024 (such as from retirement, a job loss, or a spouse's death). You must file a form called the Medicare Income-Related Monthly Adjustment Amount — Life-Changing Event with Social Security. This takes time to process, so contact Social Security as soon as your income changes rather than waiting until tax season.

Part D premiums and how to lower them

Part D premiums are set by each insurance company and vary widely by plan and by pharmacy. Two people on the same plan may pay different amounts depending on which pharmacy they use. This means the premium you paid in 2024 may not be the premium for the same plan in 2025 — and a different plan may now be cheaper.

During the annual open enrollment period (October 15 through December 7 each year), you can switch to a different Part D plan without penalty. If you did not switch during that window, you are locked into your current plan for the year unless you have a may have access to life event (such as moving, losing other drug coverage, or a significant change in your prescription needs).

To find a lower-cost plan for 2025, visit Medicare.gov and use the Plan Finder tool. Enter your current prescriptions, and the tool will show you the estimated cost for each plan, including the monthly premium, deductible, and what you will pay at the pharmacy. Many people find they can save hundreds of dollars per year by switching plans.

Part A deductible changes

Part A has no monthly premium for most people, but it does have a deductible — the amount you pay out of pocket before Medicare starts to pay. The Part A deductible increases each year and is higher in 2025 than it was in 2024.

This deductible applies per hospital stay (or per benefit period, which is a specific span of time Medicare defines). If you are admitted to the hospital multiple times in one year, you may pay the deductible more than once. Skilled nursing facility care and hospice have their own cost-sharing rules, which also change annually.

What happens if you disagree with your premium increase

If you believe your premium was calculated incorrectly, you have the right to request a review. Contact Medicare at 1-800-MEDICARE and explain why you think the amount is wrong. If your income changed in 2024 but Medicare used 2023 income to calculate your premium, you can file a life-changing event form with Social Security to request recalculation.

You can also appeal a premium increase if you believe Medicare made an error in reading your tax return or explore the income thresholds. The appeal process takes several weeks, so start it as soon as you notice the problem. Keep copies of your tax returns and any correspondence from Medicare or Social Security.

How to find your 2025 premium amounts

Medicare sends a notice called the Medicare Advantage and Part D Notice of Change or Summary of Benefits and Coverage to everyone with Medicare coverage. This notice shows your new premiums, deductibles, and copays for 2025. It arrives in the mail by December 1 each year.

If you did not receive a notice, you can view your premium information on Medicare.gov by logging into your account. You can also call 1-800-MEDICARE and speak with a representative who will read your premium amounts to you over the phone. Have your Medicare card handy when you call.

If you receive Social Security benefits, your Part B premium is usually deducted automatically from your monthly check. If you pay your premium separately, you will receive a bill showing the new amount due for January 2025.

Strategies to manage premium increases

One way to reduce what you pay is to review your plan choices every year during open enrollment. Even if you are happy with your current plan, a different plan may offer lower premiums or better coverage for your specific prescriptions and doctors. The Plan Finder tool on Medicare.gov takes about 10 minutes to use and can show you savings side by side.

If your income is low, you may be able to get help paying your premiums through a program called Medicare Savings Programs or Extra Help (for Part D). These programs are run by your state, and may be able to access depends on your income and assets. You can find out whether you may have access to by contacting your state Medicaid office or calling 1-800-MEDICARE.

Another option is to review your prescriptions with your doctor. If you take a brand-name drug that has a generic equivalent, switching may lower your Part D costs. Some drugs also have manufacturer coupons or patient information programs that can reduce what you pay out of pocket, even though they do not lower your premium.

Frequently Asked Questions

Why do Medicare premiums go up every year?

Medicare adjusts premiums based on the cost of medical care and prescription drugs in the previous year. When doctors, hospitals, and drug manufacturers raise their prices, Medicare passes some of that cost to beneficiaries through higher premiums. Congress set this formula, and it applies automatically each year.

Can I delay signing up for Part B or Part D to avoid the premium increase?

No. If you delay signing up after you are first may be able to access, you will pay a permanent penalty on top of your premium for as long as you have Medicare. The penalty is 10 percent of the standard premium for each year you were may be able to access but did not enroll. It is better to enroll on time, even if premiums are rising.

What if I cannot afford the new premium?

Contact your state Medicaid office or call 1-800-MEDICARE to ask about Medicare Savings Programs and Extra Help. These programs help people with low income pay premiums, deductibles, and copays. You can also ask your doctor about generic drugs or patient information programs that may lower your prescription costs.

If I switch plans during open enrollment, when does the new plan start?

Your new plan begins on January 1, 2025. You must make the switch by December 7, 2024. If you switch after that date, you will have to wait until the next open enrollment period in October 2025 to change plans again (unless you have a may have access to life event).

Do Medicare Advantage plans have premium increases too?

Yes. Medicare Advantage premiums vary by plan and insurance company. Some plans have no monthly premium, while others charge $50 or more per month. During open enrollment, you can compare Medicare Advantage plans to Original Medicare plus a Medigap or Part D plan to see which costs less for your situation.