Medicare Part B Premiums to Rise by 6% in 2025: Here’s What You Need to Know

America’s seniors will face higher health care costs in 2025 as the Centers for Medicare and Medicaid Services (CMS) has announced an increase in Medicare Part B premiums. The standard monthly premium for Medicare Part B will rise by $10.30, from $174.70 in 2024 to $185.00 in 2025, representing a 6% increase.

Medicare Part B covers a range of services including visits to doctors, outpatient care, preventative services such as vaccines, medical equipment like wheelchairs, and home health care. The annual deductible for all Medicare Part B beneficiaries will also increase, rising from $240 in 2024 to $257 in 2025.

The reason for the increase is attributed to “projected price changes and assumed utilization increases that are consistent with historical experience,” according to CMS. This increase is notable as Medicare Part B premiums have generally outrun inflation and the Social Security cost-of-living adjustment (COLA).

Higher-income Medicare enrollees will also face additional costs. Those with incomes above $106,000 but below $394,000 will pay an Income-Related Monthly Adjustment Amount (IRMAA) of $406.90 plus the standard $185.00 premium, totaling $591.90 per month. Seniors with incomes exceeding $394,000 will pay $443.90 in IRMAA plus the standard premium, resulting in a total of $628.90 per month.

The increased Part B premiums will be automatically deducted from Social Security checks for those already receiving Social Security benefits. For those not yet receiving Social Security benefits but paying for Medicare Part B, they will need to ensure they are paying the increased amount starting in January 2025.

In addition to the Part B changes, Medicare Part A deductibles will also increase. The inpatient hospital deductible for Part A will rise to $1,676 in 2025, an increase of $44 from 2024. Coinsurance amounts for hospital stays beyond 60 days and for skilled nursing facilities will also see increases.

The impact on Social Security benefit payments is significant, as the increase in Medicare Part B premiums will reduce the net benefit of the 2.5% Social Security COLA for 2025. The average Social Security retirement benefit is expected to increase by nearly $50 a month, but the rise in Part B premiums will reduce this gain to about $39 per month for many beneficiaries.