Medicare Part B premiums will rise again for seniors next year, according to the Centers for Medicare and Medicaid Services (CMS). The standard monthly premium for Medicare Part B enrollees will increase by $10.30 to $185.00 in 2025, up from $174.70 in 2024 and $164.90 in 2023. The annual deductible for Medicare Part B will also go up from $240 in 2024 to $257 in 2025, driven by projected cost and usage increases, CMS stated.
This increase in Medicare Part B premiums surpasses both inflation and the Social Security cost-of-living adjustment (COLA). Inflation rose by 3.2% in October, while the COLA for 2025 will be 2.5%, or about $50 more per month. Mary Johnson, a Social Security and Medicare policy analyst, explained that when Part B premiums rise faster than Social Security COLAs, they consume a larger share of Social Security benefits.
### How Much Will High-Income Americans Pay?
Medicare Part B premiums are income-based, meaning high-income beneficiaries also pay an additional Income-Related Monthly Adjustment Amount (IRMAA), which applies to about 8% of Medicare Part B enrollees. While most seniors will have Social Security benefits large enough to cover the $10.30 increase, this is not the case for higher-income individuals with IRMAA charges.
For beneficiaries filing separately from their spouses, CMS outlines the following IRMAA charges:
- Modified Adjusted Gross Income (MAGI) of $106,000 or less: standard $185.00 monthly premium.
- MAGI over $106,000 and under $394,000: $406.90 IRMAA plus the $185.00 premium, totaling $591.90 per month.
- MAGI of $394,000 or more: $443.90 IRMAA plus the standard premium, totaling $628.90 per month.
### Medicare Part B Costs Outpace COLA Increases
Rising faster than COLA has been a trend for Medicare Part B premiums for years. From 2005 to 2024, Part B premiums increased by an average of 5.5% annually, while COLAs averaged only 2.6%. This disparity partly stems from the fact that Medicare costs are not factored into the consumer price index used to calculate the COLA. Premium increases under recent administrations have shown occasional double-digit spikes, even though premiums were frozen a few times.
### When Will Seniors Start Paying the New Premium?
For those receiving Social Security, the new 2025 Part B premium will automatically be deducted from their checks in January. Those who are not yet receiving Social Security and are paying Medicare premiums directly will need to begin paying the increased amount in January.
### What Is Medicare Part B?
Medicare includes multiple parts. Part B covers physician services, outpatient hospital care, certain home health services, durable medical equipment, and other non-hospital services. Part A, by contrast, covers inpatient hospital stays, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services. About 99% of beneficiaries do not pay a Part A premium, as they have accumulated 40 quarters of Medicare-covered employment. The Part A hospital deductible will rise to $1,676 in 2025, and for those who don’t qualify for premium-free Part A, the full monthly premium will be $518, up from $505 in 2024.
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