What Medicare Premiums Are Rising in 2025

Medicare Part B premiums (doctor and outpatient care) will be $174.70 per month in 2025 for most people, up from $164.90 in 2024. That is a $9.80 monthly increase. Part D premiums (prescription drugs) vary by plan and insurer, but the average is expected to rise slightly. Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working.

The exact amount you pay depends on your income, which plan you chose, and whether you switched plans during open enrollment. Income-related surcharges — called Income-Related Monthly Adjustment Amounts (IRMAA) — affect higher earners and can add $70 to $335 per month on top of the base premium.

These increases are set by the Centers for Medicare & Medicaid Services (CMS) each October and take effect January 1. The 2025 increase is smaller than the 2024 increase, which was $13.50.

Key Takeaways

  • Part B premiums rise to $174.70 per month in 2025, a $9.80 increase from 2024.
  • Your actual premium may be higher if your income exceeds certain thresholds, which triggers IRMAA surcharges.
  • Part D premiums vary by plan and insurer, so comparing plans during open enrollment can lower your drug costs.
  • If you disagree with an IRMAA calculation based on outdated income, you can request a review using IRS tax records or life-event documentation.

How Income Affects Your 2025 Premiums

If your modified adjusted gross income (MAGI) exceeds $97,000 as a single filer or $194,000 as a married couple filing jointly, you will pay a surcharge on top of your Part B premium. These thresholds are based on your tax return from two years prior — so 2025 premiums use your 2023 tax return.

The surcharge brackets are steep. A single person with MAGI between $97,001 and $123,000 pays an extra $70 per month. At $194,001 to $246,000, the surcharge jumps to $210 per month. The highest earners pay $335 per month on top of the base premium. Part D has its own income brackets and surcharges, which can add another $12 to $77 per month.

If your income dropped significantly in 2023 — because you retired, took a loss, or had a life event — you can request that CMS use your current income instead. You will need to file Form SSA-44 (Request for Reconsideration of Part B Income-Related Monthly Adjustment Amount) and provide documentation of the change.

When Your Premium Payment Changes

Most people on Social Security have their Medicare premiums deducted directly from their monthly benefit check. If your premium increases, the deduction will be larger starting January 2025. You will see the change on your December Social Security statement or in your online account at ssa.gov.

If you do not receive Social Security, Medicare will send you a bill. You must pay by the 30th of each month to stay covered. If you miss a payment, you may face a late enrollment penalty that lasts for life.

If you switched Medicare plans during the October 15 to December 7 open enrollment period, your new plan's premiums take effect January 1, 2025. You will receive a new premium notice in December showing the exact amount for your new plan.

Part D Drug Plan Premiums and How to Lower Them

Part D premiums vary widely by plan and pharmacy. The national average premium is expected to be around $34 per month in 2025, but individual plans range from $0 to over $100 monthly. The plan you chose in 2024 may have raised its premium, or a cheaper plan may have become available.

During open enrollment (October 15 to December 7 each year), you can switch to a different Part D plan at no penalty. Use the Medicare Plan Finder tool at Medicare.gov to compare premiums, deductibles, and copays for your current medications. Switching plans can save $200 to $500 per year for people on multiple drugs.

If you cannot afford your Part D premium, you may be may be able to access for the Low-Income Subsidy (LIS) program, which covers most or all of your premium and reduces your out-of-pocket drug costs. You can explore through your state Medicaid office or by calling 1-800-MEDICARE.

Medigap and Medicare Advantage Premium Changes

If you have a Medigap policy (supplemental insurance sold by private insurers), your premium is set by your insurance company, not Medicare. Medigap premiums can increase each year based on age, claims experience, and the insurer's costs. There is no standard increase — some policies rise 3 percent, others 8 percent or more. Check your December bill or call your insurer for your 2025 rate.

If you have Medicare Advantage (Part C), your premium is also set by your plan. Many Medicare Advantage plans have $0 premiums, but some charge $50 to $200 per month. During open enrollment, you can switch to a different Advantage plan or return to Original Medicare with a Medigap policy if you prefer.

Switching from Medicare Advantage back to Original Medicare requires a Medigap policy to avoid gaps in coverage. You have a may provide issue period (usually 63 days after your Advantage plan ends) to buy Medigap without medical underwriting. After that window closes, insurers can deny you or charge more based on health status.

What to Do If You Cannot Afford the Increase

If the premium increase strains your budget, you have several options. First, check whether you may have access to for Extra Help (the Low-Income Subsidy for Part D) or Medicare Savings Programs, which pay some or all of your Part B and Part D premiums. You can explore through your state Medicaid office or by calling 1-800-MEDICARE.

Second, review your plan choices during open enrollment. Switching to a lower-premium Part D plan or a different Medigap policy can offset the increase. Third, if your income dropped in 2024, file Form SSA-44 to request that CMS recalculate your IRMAA using current income rather than your 2023 tax return.

Third, contact your state health insurance counseling program (called SHIP or HICAP, depending on your state). These programs are free and can help you understand your options, compare plans, and find financial information programs you may not know about. Find your local program at shiptalk.org.

Frequently Asked Questions

Will my Social Security check be reduced because of the Medicare premium increase?

No. Social Security has a "hold harmless" rule that prevents your benefit from dropping because of a Medicare premium increase. If your premium rises, the deduction from your check will increase, but your net benefit will not fall below what you received in December 2024. People who do not receive Social Security are not protected by this rule.

Can I appeal my IRMAA surcharge if I think it is wrong?

Yes. If your 2023 income was unusually high due to a one-time event (a large withdrawal, sale of property, or inheritance), you can request a reconsideration. File Form SSA-44 and include documentation of the event. CMS will review your case and may use a more recent year's income or a projection of your current income.

What happens if I do not pay my Medicare premium?

If you miss a Part B payment, you lose coverage after a grace period. You can restart coverage by paying the overdue amount, but you may owe a late enrollment penalty of 10 percent of your premium for each year you were not enrolled. This penalty is permanent. For Part D, missing payments can result in a similar lifetime penalty.

Can I switch Medicare plans outside of open enrollment?

Only in certain situations. You can switch if you have a may have access to life event (loss of employer coverage, move out of your plan's service area, or death of a spouse). You must report the event to Medicare within 60 days. Otherwise, you must wait until the next open enrollment period (October 15 to December 7).

Does the premium increase explore to everyone on Medicare?

The base Part B premium increase applies to everyone, but the actual amount you pay depends on your income. People with MAGI below $97,000 (single) or $194,000 (married) pay only the base premium. Higher earners pay the base premium plus an IRMAA surcharge. Part D premiums vary entirely by plan.