Each year, changes to the Medicare Part B premium, deductible, and copays are determined based on stipulations of the Social Security Act, according to a news release from CMS.In 2025, the standard monthly premium for Medicare Part B will increase to $185, an increase of $10.30 per month from $174.70 in 2024, the Centers for Medicare & Medicaid Services (CMS) announced on November 8.Approximately 8% of Medicare Part B beneficiaries will pay more than the standard premium as high earners, according to CMS. In 2025, Part B beneficiaries with annual individual incomes greater than $106,000 will pay more than the standard premium, which will vary depending on their income.The annual deductible for all Medicare Part B beneficiaries will increase to $257 in 2025, or an additional $17 from the 2024 annual deductible of $240.The increase for the 2025 Part B standard premium and deductible “is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience,” according to the same news release.Most Medicare Part B premiums are deducted automatically from Social Security benefit payments. The 2025 increase in Medicare premiums outpaces inflation, which rose to an annual rate of 3.2% in October, and the increase in Social Security benefits of 2.5%, or approximately $50 per month starting in January.Medicare Part A deductible and copay price increasesCMS also announced increases to Medicare Part A pricing in 2025.Medicare Part A covers hospital stays, and at times covers home health care, skilled facility care, and hospice care.While 99% of Medicare Part A beneficiaries pay no premium (if they meet the requirements of having at least 40 quarters of Medicare-covered employment), deductibles and copays still apply.These are the 2025 Medicare Part A pricing changes:The inpatient hospital deductible will be $1,676 in 2025, an increase of $44 from $1,632 in 2024. The deductible covers the beneficiaries’ portion of costs for the first 60 days of Medicare-covered inpatient hospital care during the benefit period.The copay for the 61st through 90th day of hospitalization will be $419 per day ($408 in 2024) during a benefit period, and $838 per day for lifetime reserve days ($816 in 2024).The daily copay for days 21 through 100 of extended care services in a benefit period in skilled nursing facilities will be $209.50 in 2025 ($204.00 in 2024).For the 1% of Part A beneficiaries who pay the full premium, the amount will be $518 a month in 2025, a $13 increase from 2024.Medicare Part D pricing changesCMS also announced that similar to Part B, high-income individuals will pay more for Medicare Part D (prescription drug coverage) monthly premiums in 2025.Beneficiaries who file individual tax returns with modified adjusted gross income of $106,000 or higher will pay an additional $13.70 to $85.80 monthly, depending on their income. Beneficiaries who are married and lived with their spouses at any time during the year, but file separate tax returns from their spouses with modified adjusted gross income, with incomes of $106,000 or higher will pay an additional $78.60 to $85.80 per month, depending on their income.More on Medicare:
