Key Takeaways
- Medicare premiums and deductibles increased modestly from 2024 to 2025, impacting out-of-pocket costs for many beneficiaries.
- Beneficiaries must review their coverage annually to manage costs effectively and avoid surprises.
- New policies for 2025, such as changes to Medicare Part D’s cost-sharing structure, may benefit beneficiaries.
Medicare is a federal program that provides health insurance to people over 65 and certain individuals under 65 with disabilities.
While Medicare helps to cover your health care costs, it does not pay for all your costs.
So, how much does Medicare cost?
In 2025, Medicare premiums start at $185 for Part B, around $21 for many Medicare Advantage plans, and about $52 for Part D prescription drug coverage.
Medigap plans offer supplemental coverage, with premiums typically ranging from $95 to $320 per month, depending on the plan and location.
If you are eligible for Medicare, you are responsible for paying premiums and out-of-pocket costs such as deductibles, copays, and coinsurance for the healthcare services you receive.
These costs have seen modest increases from 2024, making it more critical than ever to review your Medicare plan annually.
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Medicare Costs in 2025: A Comparison with 2024
Note: This section compares Medicare costs between 2024 and 2025, highlighting changes in premiums, deductibles, and cost-sharing.
| Medicare Part | 2024 Premium | 2025 Premium | Difference |
|---|---|---|---|
| Part A (40+ quarters worked) | $0 | $0 | No change |
| Part A (30–39 quarters worked) | $278 | $285 | +$7 |
| Part A (fewer than 30 quarters) | $506 | $518 | +$12 |
| Part B (standard) | $174.70 | $185 | +$10.30 |
| Part D (average) | $48 | $52 | +$4 |
Deductibles and Cost-Sharing Adjustments
| Medicare Part | 2024 Deductible | 2025 Deductible | Difference |
|---|---|---|---|
| Part A inpatient hospital stay | $1,632 | $1,676 | +$44 |
| Part B deductible | $240 | $257 | +$17 |
| Part D maximum deductible | $545 | $590 | +$45 |
Implications of Medicare Cost Changes for Beneficiaries
The increase in premiums and deductibles for 2025 means higher out-of-pocket costs for most beneficiaries, particularly those with frequent healthcare needs or high prescription drug expenses.
- Budgeting: Beneficiaries may need to allocate more for monthly premiums and annual deductibles.
- Part D Changes: The higher deductible and cost-sharing thresholds may impact beneficiaries with significant prescription drug expenses, though catastrophic coverage is now 0% under the Part D redesign for 2025.
- Medicare Advantage: While premiums remain affordable, beneficiaries should review plan-specific changes to avoid unexpected copay increases.
Visualizing Medicare Cost Trends
Note: Premium and deductible changes from 2024 to 2025.
| Medicare Part | 2024 | 2025 | Change (%) |
|---|---|---|---|
| Part A Premium (30–39 quarters) | $278 | $285 | +2.5% |
| Part A Deductible | $1,632 | $1,676 | +2.7% |
| Part B Premium (standard) | $174.70 | $185 | +5.9% |
| Part B Deductible | $240 | $257 | +7.1% |
| Part D Premium (average) | $48 | $52 | +8.3% |
Medicare Part A Costs
Medicare Part A is part of Original Medicare and covers inpatient hospital care, surgeries, lab tests, short-term skilled nursing facilities, home health care as well as hospice care.
Part A 2025 Premiums
The good news for most Americans is that about 99% of Medicare beneficiaries are eligible for premium-free Part A coverage.
This means you do not have to pay any premiums at all to receive Part A coverage.
To be eligible for premium-free Part A coverage, you or your spouse must have worked and paid Medicare taxes for at least 10 years (or 40 quarters) before enrolling in Medicare.
| Medicare Taxes Paid | Monthly Premium |
|---|---|
| >40 quarters | $0 |
| >30 quarters | $278 |
| 0 – 29 quarters | $505 |
Part A Out-of-Pocket 2025 Costs
While premiums for Part A are free for many Americans, you will still have out-of-pocket costs that you need to cover.
Inpatient Hospital Stays
Under Original Medicare, you will be responsible for deductibles and coinsurance costs during your hospital stay.
| Part A Out of Pocket Cost | Cost |
|---|---|
| Inpatient hospital deductible | $1,676 |
| Daily coinsurance for 61st-90th Day | $419 |
| Daily coinsurance for lifetime reserve days | $838 |
When Medicare beneficiaries first enroll in Medicare, they are allocated 60 lifetime reserve days, which do not renew once used.
Skilled Nursing Facilities (SNF)
Medicare Part A in 2025 covers care delivered by SNFs on a short-term basis after a qualifying hospital stay of at least 3 days, provided a doctor determines that daily skilled care is medically necessary.
Your obligations under Medicare Part A for SNF costs in 2025 include:
- Days 1–20: $0 for each benefit period
- Days 21–100: $209.50 coinsurance per day
- Days 101 and beyond: 100% of the costs
Medicare Part B Costs in 2025
Medicare Part B is part of Original Medicare and covers medically necessary doctor and outpatient medical services and supplies.
This includes ambulance services, durable medical equipment, hospice care, home health care and certain preventive services and screenings.
Part B 2025 Premiums
In 2025, the standard monthly premium for Medicare Part B enrollees is $185.
Everyone enrolled in Medicare Part B is required to pay the monthly premium to maintain their Part B coverage.
Part B Premium Adjustment
If your income reported to the IRS is above a certain threshold, you may pay have to pay a higher Part B premium than the standard rate.
This is known as an Income Related Monthly Adjustment Amount (IRMAA).
Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago, as this is the most recent tax return information provided to Social Security by the IRS, to determine whether you need to pay a higher premium.
For example, Social Security will use tax returns from 2023 to determine your IRMAA in 2025.
In 2025, if your 2023 reported income exceeds $106,000 individually or $212,000 jointly, your Part B premium will include an Income-Related Monthly Adjustment Amount (IRMAA) and be higher than the standard Part B premium.
| Individual Filing | Joint Filing | Income-Related Monthly Adjustment Amount (IRMAA) | Monthly Premium (2025) |
|---|---|---|---|
| Less than or equal to $106,000 | Less than or equal to $212,000 | $0.00 | $185.00 |
| Greater than $106,000 and less than or equal to $133,000 | Greater than $212,000 and less than or equal to $266,000 | $72.90 | $257.90 |
| Greater than $133,000 and less than or equal to $167,000 | Greater than $266,000 and less than or equal to $334,000 | $189.30 | $374.30 |
| Greater than $167,000 and less than or equal to $200,000 | Greater than $334,000 and less than or equal to $400,000 | $306.00 | $491.00 |
| Greater than $200,000 and less than $500,000 | Greater than $400,000 and less than $750,000 | $395.60 | $580.60 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $436.20 | $621.20 |
Part B 2024 Deductible
The annual deductible for all Medicare Part B beneficiaries is $257 in 2025.
You must pay this full amount out of pocket each year before Medicare will start helping to pay for any healthcare costs.
Part B 2025 Out-of-Pocket Costs
The cost-share for Medicare Part B out-of-pocket costs is very simple. Once you have reached your Part B deductible, you pay 20% of the Medicare-approved Part B services (such as doctor services, outpatient therapy, and durable medical equipment).
Medicare Part C Costs in 2025 (Medicare Advantage)
Medicare Part C (also known as ‘Medicare Advantage’) plans are bundled “all-in-one” plans provided by private health insurance companies approved by the federal government to deliver Medicare to consumers.
These plans provide an alternate method to Original Medicare for receiving Medicare coverage.
By law, Medicare Advantage plans must provide at least the same coverage you would receive under Part A and B of Original Medicare.
Medicare Advantage plans often include Part D (Prescription Drug Coverage) and extra benefits such as vision, hearing, and dental care that Original Medicare does not cover.
Part C 2025 Premiums
If you are on Medicare Advantage (also known as Part C coverage), you must continue paying the Medicare Part B premium of $185 per month in 2025.
Depending on your coverage, you may also need to pay an additional premium to the private insurance company offering the plan.
The estimated monthly Medicare Advantage (MA) plan premium for 2025 is $21, though costs vary significantly. Some plans have premiums as low as $0, while others may exceed $200 monthly.
In 2025, approximately 65% of Medicare Advantage plans will feature a $0 premium, meaning beneficiaries will not pay additional premiums beyond the standard Medicare Part B premium.
Part C 2025 Out-of-Pocket Costs
Out-of-pocket costs for Medicare Advantage plans, such as deductibles, copays, and coinsurance, are determined by the specific policy guidelines of each plan and can vary significantly.
- For most Medicare Advantage plans, beneficiaries will likely pay a copayment of $0 to $25 for primary care visits and $25 to $55 for specialist visits.
- Daily copayments for inpatient hospital stays typically apply for the first 5–7 days of hospitalization, depending on the plan.
Maximum Out-of-pocket (MOOP)
Medicare Advantage plans are required by law to cap annual out-of-pocket spending, offering financial protection for beneficiaries.
In 2025, the out-of-pocket maximums are:
- $9,100 for in-network services.
- $13,700 for combined in-network and out-of-network services.
This differs from Original Medicare, where there is no cap on your 20% share of medical expenses under Part B.
Learn More: How to Compare Medicare Advantage Plans
Medicare Part D Costs in 2025 (Prescription Drug Coverage)
Medicare Part D is prescription drug coverage provided by private insurance companies. If you are on Original Medicare, you can access Part D coverage by purchasing a standalone Prescription Drug Plan (PDP).
Alternatively, you can also access Part D coverage if you enroll in a Medicare Advantage (Part C) plan that bundles in prescription coverage (also known as an ‘MA-PD’ plans).
Part D 2025 Premiums
If you are on Original Medicare and purchasing a standalone Prescription Drug Plan (PDP), Part D premiums will vary by insurer and plan.
The Kaiser Family Foundation estimates the national average enrollment-weighted monthly PDP premium for 2025 will be $52.
If you are enrolled in a Medicare Advantage plan that includes prescription drug coverage (MA-PD), the cost of Part D is bundled into your monthly Medicare Advantage premium, and you will not need to purchase a separate Part D plan.
Part D 2024 Premium Adjustment
Like Medicare Part B, high-income earners (based on your income from 2023) may have higher Medicare Part D premiums in 2025 due to the Income-Related Monthly Adjustment Amount (Part D-IRMAA).
Social Security will notify you if you are required to pay the Part D IRMAA. This amount is paid directly to Social Security rather than your plan provider.
In 2024, the IRMAA adjustments are as follows:
| Individual Filing | Joint Filing | Income-Related Monthly Adjustment Amount (IRMAA) |
|---|---|---|
| Less than or equal to $106,000 | Less than or equal to $212,000 | $0.00 |
| Greater than $106,000 and less than or equal to $133,000 | Greater than $212,000 and less than or equal to $266,000 | $13.80 |
| Greater than $133,000 and less than or equal to $167,000 | Greater than $266,000 and less than or equal to $334,000 | $35.50 |
| Greater than $167,000 and less than or equal to $200,000 | Greater than $334,000 and less than or equal to $400,000 | $57.30 |
| Greater than $200,000 and less than $500,000 | Greater than $400,000 and less than $750,000 | $78.80 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $86.40 |
Part D 2025 Deductible
Deductibles can vary across Part D plans, but the government establishes the maximum deductible allowed each calendar year.
In 2025, the maximum Part D deductible is $590.
If your plan includes a deductible, you are required to pay 100% of your prescription drug costs until you meet the deductible amount. Afterward, your Part D plan begins to share the cost of your medications.
Part D 2025 Out-of-Pocket Costs
For Part D, your copay and coinsurance obligations may change depending on the four different coverage phases.
You can read more about these ‘phases’ in our guide to Medicare Part D costs.
Plans generally categorize their formularies into cost-sharing ‘tiers,’ which determine the copayment/coinsurance you will pay for the drug you are filling.
Many will have 3 to 4 tiers, with lower tiers costing less than higher tiers. For example:
- Tier 1: Generic Drugs
- Tier 2: Preferred Brand Name Drugs
- Tier 3: Non-preferred Brand Name Drugs
- Tier 4: High-cost of ‘specialty’ drugs
Learn More: How to Compare Medicare Part D Plans (Prescription Drug Coverage)
How much is Medicare Supplement in 2025 (Medigap)?
Private insurance companies sell Medicare Supplement (Medigap) plans and help cover out-of-pocket costs (or “gaps”) that Original Medicare does not cover, such as the 20% coinsurance under Part B.
You cannot purchase a Medigap policy if enrolled in Medicare Advantage.
Like Medicare Advantage and Part D, the premium for Medigap in 2025 is determined by the private health insurer and can vary significantly based on:
- The type of plan you choose (10 standardized plans are available, such as Plan F, G, and N).
- Your location.
- Factors like age, gender, and health status.
Estimated Monthly Premiums (2025):
- Plan G: Average national premium of $170–$250, depending on insurer and location.
- Plan N: Slightly lower premiums, typically $120–$200, but may include copayments for doctor or emergency visits.
Beneficiaries are encouraged to compare premiums and plan benefits to choose a policy that aligns with their healthcare needs and budget.
Premiums for Medicare Supplement plans (Plan F, G, and N) in 2025 typically range from $95 to $320 per month. Costs vary significantly based on plan type, insurer, location, and individual factors such as age and health.
- Plan G: The most popular Medigap plan, Plan G, has an average monthly premium of approximately $175 nationally, with costs ranging from $150 to $250, depending on location and insurer.
- Plan N: Offers slightly lower premiums, generally ranging from $130 to $210, but may include copayments for doctor and emergency room visits.
Medigap premiums also depend on the pricing method used by insurance companies:
- Community-rated: Everyone pays the same premium regardless of age.
- Issue-age-rated: Premiums are based on your age at the time of purchase.
- Attained-age-rated: Premiums increase as you age.
Beneficiaries should carefully compare plan options and pricing to find the coverage that best suits their healthcare needs and budget.
Learn More: How to Compare Medicare Supplement Plans
Review Coverage Annually
With updates in premiums and out-of-pocket costs each year, it’s important to review your coverage annually and explore options like Medigap to minimize unexpected expenses. Staying current on these changes ensures you’re ready for each new calendar year and fully equipped to navigate your Medicare journey.
For personalized assistance and support, consider reaching out to a licensed advisor, especially when selecting supplemental coverage.
Sources
- Medicare.
- Medicare Costs in 2025. Published 2024. Last Accessed January 2025.
- CMS.
- 2025 Part D Redesign Fact Sheet. Published 2024. Last Accessed January 2025.
- NCOA.
- Medicare Part D Cost-Sharing Chart. Published 2024. Last Accessed January 2025.
- Medicare.
- Avoid Late Enrollment Penalties. Last Accessed January 2025.
- KFF
- Medicare Part D in 2025: A First Look at Prescription Drug Plan Availability, Premiums, and Cost Sharing. Published 2024. Last Accessed January 2025.
