With the arrival of 2025, Medicare beneficiaries should be prepared to find some remarkable changes in the premiums and deductibles of different parts of the Medicare program.
Different Medicare parts
Here is the list of parts in the Medicare program.
Medicare Part A: hospital coverage
Medicare Part A mainly covers inpatient hospital stays, care from a skilled nursing facility, and some home health services.
Deductible increase: the inpatient hospital deductible will be $1,676 in 2025, an increase of $44 from $1,632 in 2024. This is a per benefit period deductible and there is no limit to the amount of benefit periods you may have in one year; thus, you may need to pay this deductible more than once per year.
Coinsurance for extended stay: Coinsurance is $419 per day from the 61st through the 90th day for extended days beyond 60 days, up from $408 in 2024. For days beyond the 90th, coinsurance increases to $838 per day from the earlier $816.
Skilled nursing facility care: Beneficiaries whose care requires extended stay in a skilled nursing facility will pay $209.50 in daily coinsurance for days 21 through 100, an increase of $5.50 from 2024.
Medicare Part B: Medical services
Part B covers outpatient care, doctor visits, preventive services, and durable medical equipment.
Monthly premium: The Part B standard monthly premium is increasing by $10.30, to $185 for the year 2025 from $174.70 for 2024.
Annual deductible: The deductible for Part B services rises by $17, from $240 to $257.
IRMAA: Furthermore, surcharges add extra to high-income beneficiaries. For the year 2025, these high-income beneficiaries will have increased premiums: individuals whose MAGI exceeds $106,000 and married couples filing jointly with a MAGI over $212,000. Surcharge premiums are from $74.00 to $443.90 depending on income category.
Medicare Part D: Prescription drug coverage
Part D is the prescription drugs part.
Average premium: Premiums for plans offering Part D coverage will have an average premium of $46.50 per month in 2025, down from $53.95 in 2024.
Out-of-Pocket cap: Out-of-pocket spending for prescription drugs would be capped, for the first time, at $2,000 starting in 2025. It is indexed to the growth in per capita Part D costs-meaning it could go up in the future. Beneficiaries could also be given options to stretch out their out-of-pocket costs over the year through the Medicare Prescription Payment Plan, to soften the economic shock of expensive medications.
IRMAA for Part D: Like Part B, high-income beneficiaries continue to surcharge their Part D premiums. These range from $13.70 to $85.80 in 2025 depending on income level.
Medicare advantage plans (Part C)
Medicare Advantage Plans are an alternative to Original Medicare. Most have additional benefits beyond what is covered under Original Medicare.
Average premium: The average premium of Medicare Advantage plans in 2025 will be $17.00 per month, down from $18.23 in 2024.
Maximum Out-of-pocket limits: These plans come with maximum out-of-pocket limits for services covered under Parts A and B. For 2025, these limits will be $9,350 for in-network services and $14,000 for combined in-network and out-of-network services, compared to $8,850 and $13,300, respectively, in 2024.
Medigap (Medicare Supplement Insurance)
Medigap policies help pay for health care costs that Original Medicare doesn’t cover, including copayments, coinsurance, and deductibles.
Medigap plan G: This has been becoming increasingly popular due to the phasing out of Plan F for new enrollees. It covers all the Part A and Part B coinsurance except for the Part B deductible at $257 in 2025. It also covers excess charges from providers who do not accept Medicare assignment.
K and L plans: These plans carry lower premiums but with higher out-of-pocket expenses. They, too have yearly out-of-pocket limits. Once the limit is paid for, the plan pays 100% of the allowable costs for the remaining part of the year.
Income-Related monthly adjustment amount (IRMAA)
IRMAA also extends to beneficiaries whose incomes are on the higher side based on their Part B and Part D premiums.
Income thresholds: The income thresholds, in the case of 2025, were $106,000 for individuals and $212,000 for married couples filing jointly. Accordingly, individuals above these amounts would have to pay more premiums relative to their brackets.
Notice: IRMAA is calculated by SSA and then notice is sent to the beneficiaries in case of any adjustments in the premium amounts.
