Medicare Costs in 2025: What's New and What It Means for You
Medicare changes can be confusing, but don’t worry—we’ve simplified the 2025 updates so they’re easy to understand and even easier to plan for.
Medicare Part B: Outpatient Services
Monthly Premium: $185.00 (up from $174.70 in 2024)
Annual Deductible: $257 (up from $240)
Coinsurance: After meeting the deductible, you typically pay 20% of the Medicare-approved amount for services.
Note: Higher-income beneficiaries may pay more due to Income-Related Monthly Adjustment Amounts (IRMAA). For example, individuals earning over $106,000 may see premiums ranging from $259.00 to $628.90.
Medicare Part A: Hospital Coverage
Inpatient Hospital Deductible: $1,676 per benefit period (up from $1,632)
Coinsurance for Hospital Stays:
Days 1–60: $0
Days 61–90: $419 per day
Days 91–150: $838 per day (lifetime reserve days)
Note: Most people don’t pay a premium for Part A. However, if you have fewer than 40 quarters of Medicare-covered employment, premiums range from $285 to $518 per month.
Medicare Part D: Prescription Drug Coverage
Annual Out-of-Pocket Maximum: $2,000 (new cap introduced in 2025)
Elimination of 5% Coinsurance: Beneficiaries no longer pay 5% coinsurance after reaching catastrophic coverage.
Note: These changes aim to reduce the financial burden of high prescription drug costs.
Quick Comparison: 2024 vs. 2025
| Coverage Area | 2024 Cost | 2025 Cost | Change |
|---|---|---|---|
| Part B Premium | $174.70 | $185.00 | +$10.30 |
| Part B Deductible | $240 | $257 | +$17 |
| Part A Deductible | $1,632 | $1,676 | +$44 |
| Part D Out-of-Pocket Max | N/A | $2,000 | New in 2025 |
| Part D Catastrophic Coinsurance | 5% | $0 | Eliminated |
Tips for Managing Medicare Costs
Review Your Plan Annually: During open enrollment (October 15–December 7), compare plans to ensure you’re getting the best coverage for your needs.
Check for Extra Help: If you have limited income and resources, you may qualify for programs that help pay Medicare costs.
Consider Medigap: Supplemental insurance can help cover out-of-pocket costs not paid by Original Medicare.
Use Preferred Pharmacies: Some Part D plans offer lower costs at preferred pharmacies.
Staying informed about Medicare changes ensures you can make the best decisions for your healthcare needs. For more detailed information or personalized advice, visit Medicare.gov or contact your local State Health Insurance Assistance Program (SHIP).