Savvy Senior: What you'll pay for Medicare in 2025

Dear Savvy Senior,

I know there will be a small 2.5 percent cost-of-living increase in Social Security benefits next year, but what about Medicare? What will the Medicare Part B monthly premiums be in 2025, and when do the surcharges kick in for higher income beneficiaries?

-Medicare Beneficiary

Dear Beneficiary,

The Centers for Medicare and Medicaid Services recently announced their cost adjustments for 2025 and the increases for premiums and out-of-pocket costs for most beneficiaries will be moderate. But if you’re a high earner, you’ll pay significantly more. Here’s what you can expect to pay in 2025.

Part B Premium
While Medicare Part A, which pays for hospital care, is premium-free for most beneficiaries, Part B, which covers doctor visits and outpatient services, does have a monthly premium.

Starting in January, the standard monthly Part B premium will be $185, up from $174.70 in 2024. That $10.30 bump represents a 5.9 percent increase, which is more than double the most recent Social Security cost-of-living adjustment which was 2.5 percent.

But if you’re a high earning beneficiary, which makes up about 8 percent of all Medicare recipients, you’ll have to pay more. Medicare surcharges for high earners, known as the income-related monthly adjustment amount (or IRMAA), are based on adjusted gross income (AGI) from two years earlier, which means that your 2025 Part B premiums are determined by your 2023 AGI, which is on line 11 of the IRS tax form 1040.

Here’s how it breaks down. If your 2023 income was above $106,000 up to $133,000 ($212,000 up to $266,000 for married couples filing jointly), your 2025 Part B monthly premium will be $259.

Monthly Part B premiums for singles with an income between $133,000 and $167,000 ($266,000 and $334,000 for joint filers) will rise to $370.

Individuals earning above $167,000 up to $200,000 ($334,000 to $400,000 for joint filers) will see their monthly Part B premium increase to $480.90.

Those with incomes above $200,000 up to $500,000 ($400,000 to $750,000 for joint filers), will pay $591.90 per month in 2025. And single filers with income of $500,000 or more ($750,000 or more for joint filers) will pay $628.90 per month.

Part D Premium
If you have a stand-alone Medicare (Part D) prescription drug plan, the average premium in 2025 will be $46.50 per month for most beneficiaries, down from $53.95 in 2024. But again, for high earners with annual incomes above $106,000 ($212,000 for joint filers) you’ll pay a monthly surcharge of $13.70 to $85.80 (based on your income level) on top of your regular Part D premiums.

How to Contest Income
Beneficiaries that fall into any of the high-income categories and have experienced certain life-changing events that have reduced their income since 2023, such as retirement, divorce or the death of a spouse, can contest the surcharge. For more information on how to do this, see “Medicare Premiums: Rules for Higher-Income Beneficiaries” at SSA.gov/benefits/medicare/medicare-premiums.html.

Other Medicare Increases
In addition to the Part B and Part D premium increases, there are other cost increases you should be aware of. For example, the annual deductible for Medicare Part B will be $257 in 2025, which is $17 more than the 2024 deductible of $240. And the deductible for Medicare Part A, which covers hospital services, will increase to $1,676 in 2025. That’s $44 more than the 2024 deductible of $1,632. There are no surcharges on Medicare deductibles for high earners.

For more information on all the Medicare costs for 2025, visit Medicare.gov/basics/costs or call 800-633-4227.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.