The Centers for Medicare and Medicaid Service has released 2025 Medicare costs for Medicare Part A, B and D. Every year Medicare premiums, deductibles and coinsurance can change so it is important to familiarize yourself with these changes so you can plan accordingly. As usual, your costs for next year are increasing across the board. However, there are significant changes to Part D that will reduce prescription costs for many.
Continue reading to learn the 2025 cost changes for:
- Part A Premiums, Deductibles and Coinsurance
- Part B Premiums, Deductibles and Coinsurance
- Income Related Adjustment Amounts for Part B and Part D
- How to lower costs and reduce exposure from Original Medicare
What are Medicare Part A Costs for 2025?
Part A Premium
Medicare Part A primarily covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care services. Most people don’t pay a premium for Medicare Part A if they or their spouse have worked and paid taxes for 10 or more years or those with certain disabilities. But if you do not meet the work credits to get premium-free Part A, then you will need to buy it. If you elect to voluntarily enroll in Premium Part A, then you may be required to pay up to $518 per month for 2025. This amount is dependent on your number of work credits.
Part A Deductible and Coinsurance
Part A deductible for hospital stays is the amount you’ll pay for each hospital benefit period before Medicare starts to pay. The deductible for 2025 is $1,676. There is no limit to the number of benefit periods in a year. You may pay more than one Part A deductible each year if you are admitted to the hospital multiple times. The initial deductible covers days 1-60, then the per day coinsurance are broken down as follows:
Part A Deductible and Coinsurance Table
| Inpatient hospital deductible | $1,676 |
| Daily hospital coinsurance for 61st-90th day | $419 |
| Daily hospital coinsurance for lifetime reserve days | $838 |
| Skilled nursing facility daily coinsurance (days 21-100) | $209.50 |
What are Medicare Part B costs for 2025?
Part B Premium
You pay a premium each month for Part B. Medicare costs for Part B have gone up for 2025. Most people will pay the standard premium amount of $185 per month. However, Part B premiums are based on income and high-income earners will have an Income Related Monthly Adjustment Amount (IRMAA). The IRMAA brackets for Part B in 2025 are listed below. These income-related monthly adjustment amounts affect roughly 8% of people with Medicare Part B.
If you have low-income below 135% of the federal poverty level (FPL) then you may qualify to get help paying for your Part B premium.
Income Related Monthly Adjustment Amount (IRMAA)
| Individual Tax Return | Joint Tax Return | Part B Premium + IRMAA |
| $106,000 or less | $212,000 or less | $185.00 |
| $106,001 to $133,000 | $212,001 to $266,000 | $259.00 (185.00 + 74.00) |
| $133,001 to $167,000 | $266,001 to $334,000 | $370.00 (185.00 +185.00) |
| $167,001 to $200,000 | $334,001 to $400,000 | $480.90 (185.00 +295.90) |
| $200,001 to $499,999 | $400,001 to $749,999 | $591.90 (185.00 + 406.90) |
| $500,000 + | $750,000 + | $628.90 (185.00 + 443.90) |
Learn how you can Reduce your IRMAA or how to File an IRMAA Appeal?
Part B Deductible and Coinsurance
Medicare Part B costs also include an annual deductible and coinsurance for services received. You will pay a $257 deductible for 2025. After you meet your deductible, you will pay 20% of the Medicare-approved Part B services. These services include:
- Services from Doctors and other providers (office visits, labs, xrays)
- Outpatient care
- Durable Medical Equipment
- Part B drugs
What are the Part D costs for 2025?
Part D plans are offered through private insurance companies and can be standalone drug plans or part of a Medicare Advantage plan. Each plan has a different formulary so Part D premiums, deductibles and copays vary by plan. However, Medicare sets maximums on these costs each year.
The maximum Part D deductible any plan can charge is $590 for 2025. But some plans may not have a deductible at all for certain drug tiers, or the deductible may be less than the maximum. Medicare also sets the catastrophic coverage limit for all Part D plans. The new Part D reforms for 2025 require that all Part D plans include a $2,000 cap before you reach catastrophic coverage. This $2,000 is based on what you pay out-of-pocket for prescriptions covered by your plan. After you reach $2,000 you will pay $0 at the pharmacy for drugs covered under your plan formulary. Learn How The $2,000 Part D Maximum Out-of-Pocket Is Calculated And Why You May Pay Less.
The monthly premium for Part D is also based on income. So if you are a high income-earner, Social Security will adjust your premium higher. Plan sponsors will set their Part D plan premium, and Social Security will adjust it based on IRMAA brackets below.
Part D IRMAA Brackets
| Individual Tax Return | Joint Tax Return | Part D IRMAA (in addition to Part D plan premium) |
| $106,000 or less | $212,000 or less | – |
| $106,001 to $133,000 | $212,001 to $266,000 | + $13.70 |
| $133,001 to $167,000 | $266,001 to $334,000 | + $35.30 |
| $167,001 to $200,000 | $334,001 to $400,000 | + $57.00 |
| $200,001 to $499,999 | $400,001 to $749,999 | + $78.60 |
However, if you have low-income then you may qualify for Extra Help paying your Part D premium.
Part D will continue to cover any ACIP-recommended drugs with $0 cost-share in 2025. For more information on covered vaccines, see our Comprehensive Guide to Medicare Covered Vaccines.
How to reduce costs and exposure from Original Medicare?
There is no Maximum out-of-pocket cost for annual spending when you only have Part A and Part B coverage. This puts you at risk if you have any catastrophic or high-cost medical needs since costs are endless. But various coverage options exist to limit your exposure from Original Medicare and help you lower costs overall. You can choose between a Medicare Advantage plan or a Medicare Supplement plan with a standalone Part D drug plan. The option that is right for you will depend on many factors. Visit our Comprehensive Comparison of Medicare Advantage versus Medicare Supplements for clarification between the two.
We recommend you seek the help of a local, licensed agent who can help you compare plans in your area!
*2025 Medicare costs pulled from Medicare at https://www.medicare.gov/basics/costs/medicare-costs
