Medicare Part B Premiums and Deductibles to Increase in 2025

Medicare Part B Premiums and Deductibles to Increase in 2025

Seniors enrolled in Medicare Part B will see an increase in their monthly premiums and annual deductibles in 2025. The Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly premium will rise by $10.30, or about 6%, to $185.00. The annual deductible will also increase to $257.

This increase is attributed to projected price changes and assumed utilization increases that are consistent with historical experience. In 2023, the Part B premium saw a rare decline, falling just over $5 from the previous year. However, historically, Part B premiums have generally outpaced inflation and Social Security's annual cost-of-living adjustment (COLA).

For beneficiaries whose Part B premiums are automatically deducted from their Social Security checks, the change will take effect in January 2025. Those who pay their premiums directly will need to adjust their payments starting in January.

Income-Related Monthly Adjustment Amount (IRMAA)

Wealthier Americans enrolled in Medicare Part B may also be subject to an Income-Related Monthly Adjustment Amount (IRMAA). This additional charge impacts about 8% of Part B beneficiaries.

Married couples who file separate tax returns and have a modified adjusted gross income of $106,000 or less will pay the standard premium of $185.00 per month.

Beneficiaries with incomes above $106,000 but below $394,000 will pay an IRMAA of $406.90 in addition to the standard premium, for a total of $591.90 per month.

Seniors with incomes exceeding $394,000 will pay an IRMAA of $443.90 plus the standard premium, for a total of $628.90 per month.