Medicare Part B Premiums to Increase in 2025: Here’s What You Need to Know

The Centers for Medicare & Medicaid Services (CMS) has announced significant changes to Medicare Part B premiums and deductibles for 2025. As of January 2025, the standard monthly premium for Medicare Part B will rise to $185, an increase of $10.30 from the 2024 premium of $174.70. This adjustment is primarily driven by projected price changes and assumed utilization increases, consistent with historical trends.

In addition to the premium increase, the annual deductible for all Medicare Part B beneficiaries will also rise, from $240 in 2024 to $257 in 2025, an increase of $17. This change affects all beneficiaries, regardless of their income level.

Approximately 8% of Medicare Part B beneficiaries, those with annual individual incomes greater than $106,000, will pay more than the standard premium. The exact amount will vary based on their income levels. Most Medicare Part B premiums are automatically deducted from Social Security benefit payments.

The increase in Medicare Part B premiums outpaces the current inflation rate, which stood at 3.2% in October, and the increase in Social Security benefits, which is set at 2.5% or approximately $50 per month starting in January 2025.

CMS also announced changes to Medicare Part A, which covers hospital stays, home health care, skilled facility care, and hospice care. While 99% of Medicare Part A beneficiaries pay no premium if they have at least 40 quarters of Medicare-covered employment, they will still face increased deductibles and copays in 2025.