Medicare Part B Premium and Deductible Increases for 2025: What You Need to Know
Introduction
In 2025, seniors in the United States will face higher healthcare costs, particularly with increased Medicare Part B premiums and deductibles. According to the Centers for Medicare & Medicaid Services (CMS), the standard monthly premium for Medicare Part B will rise by around 6%, from $174.70 in 2024 to $185.00 in 2025.
What Does Medicare Part B Cover?
Medicare Part B provides coverage for essential outpatient services, including doctor visits, preventive care (like vaccines), medical equipment (e.g., wheelchairs), and home health services. On the other hand, Medicare Part A, which covers hospital stays, generally does not require premiums for most beneficiaries, as it is funded through payroll taxes paid during employment.
Why Are Premiums Going Up?
CMS states that the increase in premiums and deductibles is due to anticipated price changes and increased usage of healthcare services, based on previous trends. In 2023, the Part B premium was $164.90, reflecting a rare decrease of around $5 from the previous year.
What About High-Income Medicare Beneficiaries?
Higher-income individuals will face even higher premiums due to the Income-Related Monthly Adjustment Amount (IRMAA). This surcharge applies to around 8% of Medicare Part B recipients. For example, individuals with a modified adjusted gross income (MAGI) of $106,000 or less will pay the standard $185.00 monthly premium. Those with incomes between $106,000 and $394,000 will pay an additional $406.90 IRMAA, totaling $591.90 per month. Beneficiaries earning more than $394,000 will pay $443.90 in IRMAA, bringing their total premium to $628.90 per month.
How Does This Compare to Social Security COLA?
Medicare Part B premiums typically rise faster than the Social Security cost-of-living adjustment (COLA). For 2024, Social Security benefits will increase by 2.5%, adding about $50 per month for the average household. However, the increase in Medicare Part B premiums tends to be higher than the COLA.