2025 Medicare Parts A & B Premiums and Deductibles: What You Need to Know

On November 8, 2024, the Centers for Medicare & Medicaid Services (CMS) released the updated premiums, deductibles, and coinsurance amounts for Medicare Parts A and B, along with income-related adjustments for Medicare Part D. Here’s a look at what’s changing for 2025 and what it means for you.

Medicare Part B Premium and Deductible

Medicare Part B covers services like outpatient care, doctor visits, and durable medical equipment. Each year, the CMS reviews and adjusts Part B premiums and deductibles in line with the Social Security Act, reflecting changes in service costs and projected usage.

• Monthly Premium: The standard monthly premium for Medicare Part B enrollees will increase to $185.00, up from $174.70 in 2024.

• Annual Deductible: The deductible will rise to $257, up from $240.

With many Medicare Supplement plans (except Plan F), beneficiaries will need to satisfy the Part B deductible. This applies to popular plans like Plan G and Plan N, meaning enrollees pay this deductible out-of-pocket before their coverage begins.

Income-Related Monthly Adjustment Amounts (IRMAA) for Part B
High-income beneficiaries will see income-related adjustments to their premiums, impacting roughly 8% of Medicare Part B enrollees. Premium rates based on income levels are:

• Income up to $106,000: $185.00

• Income $106,001 - $133,000: $258.60

• Income $133,001 - $166,000: $332.20

• Income $166,001 - $199,000: $405.80

• Income $199,001 - $500,000: $590.10

• Income $500,001 and above: $630.50

Part B Premiums for Immunosuppressive Drug Coverage
For individuals with only Part B coverage for immunosuppressive drugs after a kidney transplant, premiums range from $110.40 to $552.10, based on income.

Medicare Part A Premium and Deductible

Medicare Part A primarily covers inpatient hospital care, skilled nursing facilities, and hospice. Most Medicare beneficiaries don’t pay a Part A premium, but here’s what’s changing for 2025:

• Inpatient Hospital Deductible: $1,676 (up from $1,632 in 2024)

• Coinsurance Rates for Hospital Stays:

  • Days 1-60: $0

  • Days 61-90: $419 per day (up from $408)

  • Lifetime Reserve Days (over 90 days): $838 per day (up from $816)

• Skilled Nursing Facility Coinsurance:

  • Days 1-20: $0

  • Days 21-100: $209.50 per day (up from $204 in 2024)

Part A Premiums for Voluntary Enrollees
For individuals who do not qualify for premium-free Part A:

• 30-39 quarters of Medicare-covered employment: $285

• Fewer than 30 quarters: $518

Medicare Part D Income-Related Monthly Adjustment Amounts

Since 2011, the monthly premium for Medicare Part D, which covers prescription drugs, has been income-adjusted. High-income beneficiaries, representing about 8% of Part D enrollees, will pay an additional amount on top of their standard Part D premium. Adjustments range from $13.70 for the lowest high-income bracket to $85.80 for the highest bracket.

Premium Adjustments for Married Beneficiaries Filing Separately

Beneficiaries who are married, live with their spouse, and file separate tax returns are subject to unique premium adjustments for Medicare Parts B and D:

• Medicare Part B premiums for these individuals range from $185.00 for incomes under $106,000 to $628.90 for incomes of $394,000 or more.

• Medicare Part D adjustments can reach an additional $85.80 per month for those in the highest income bracket.

Planning Ahead

The annual changes to Medicare premiums, deductibles, and income-related adjustments can significantly impact your healthcare costs. If you’d like to discuss ways to optimize your Medicare plan for 2025, we’re here to help. As your trusted partner in health insurance solutions, we can provide personalized guidance to ensure you’re prepared for the year ahead.