Medicare announced that Part B monthly premiums would rise to $185.00 in 2025 from $174.70 this year – an increase of $10.30, or 5.9 percent. The annual Part B deductible, which most people must pay before their Medicare coverage begins, will rise by $17, or 7 percent, to $257 from $240. Part B covers doctors, medical equipment, and outpatient expenses.
Social Security earlier announced a 2.5 percent cost-of-living adjustment (COLA) for next year. The average monthly benefit will rise by $59 next year, to $1,976 from $1,927. Part B premiums are paid out of Social Security benefits by Medicare beneficiaries who are receiving Social Security. Backing out the Part B increase thus will produce an average net monthly payment boost of about $49.
Under Social Security “hold harmless” rules, a person’s Part B premium increase cannot be larger than their COLA. People receiving less than about $415 in monthly Social Security benefits will not be charged the full Part B premium increase.
The Centers for Medicare & Medicaid Services (CMS) also released 2025 details for Part A of Medicare, which covers inpatient care in hospitals and skilled nursing facilities, hospice, inpatient rehabilitation, and some in-home care. The deductible for Part A will rise 2.7 percent to $1,676 in 2025 from $1,632 this year. Coinsurance amounts for hospital and skilled nursing care also will rise 2.7 percent.
Medicare also levies high-income surcharges that apply to about 8 percent of beneficiaries. They are called income-related adjustment amount, or IRMAA. A CMS fact sheet did not include complete information for Part B IRMAA premium increases. I will post these when they become available.
Here are the IRMAA premiums for people with Part D drug plans.
Individual tax returns Joint tax returns IRMAA
$106,000 or less $212,000 or less $0.00
$106,001 - $133,000 $212,001 - $266,000 $13.70
$133,001- $167,000 $266,001 - $334,000 $35.30
$167,001 -$200,000 $334,001 - $400,000 $57.00
$200,001 - $500,000 $400,001 - $750,000 $78.60
More than $500,00 More than $750,000 $85.80
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