Medicare Part B Premiums to Increase in 2025
Seniors enrolled in Medicare Part B will see an increase in their monthly premiums in 2025. The Centers for Medicare and Medicaid Services (CMS) announced that the standard monthly premium will rise by $10.30, or about 6%, to $185.00. This increase is due to projected price changes and assumed utilization increases that are consistent with historical experience.
The annual deductible for all Medicare Part B beneficiaries will also increase to $257 in 2025, up from $240 in 2024.
Comparing Medicare Part B Premiums to Social Security COLA
Medicare Part B premiums have generally outpaced inflation as well as Social Security's annual cost-of-living adjustment (COLA). While yearly inflation climbed 2.4% in September, the Social Security COLA for 2025 will be 2.5%, or an average of $50 more per household.
Income-Related Monthly Adjustment Amount (IRMAA)
A beneficiary's Part B monthly premium is based on their income. Wealthier Americans also pay an Income-Related Monthly Adjustment Amount (IRMAA), which impacts about 8% of those with Medicare Part B.
Married individuals who lived with their spouses at any time during the year and file separate tax returns with modified adjusted gross income of $106,000 or less will pay just the standard Medicare Part B premium of $185.00 a month.
Beneficiaries with incomes above $106,000 but below $394,000 will pay IRMAA of $406.90 plus the standard $185.00, for a total of $591.90 a month.
Seniors with incomes in excess of $394,000 will pay $443.90 in IRMAA and the standard $185.00, for a total of $628.90 a month.
Impact on Social Security Benefit Payments
Medicare enrollees who are already receiving Social Security benefits can expect the new 2025 Part B premium to be automatically deducted from their Social Security checks in January.
Those not yet receiving Social Security benefits but paying Medicare Part B each month will need to ensure they are paying the increased amount, beginning in January 2025.