Yes, Medicare premiums are rising in 2025, but the increases vary by program and by person

Medicare Part B premiums — the monthly charge for doctor visits and outpatient care — are increasing to $185 per month for most people in 2025, up from $175.10 in 2024. Part D premiums, which cover prescription drugs, are also rising on average, though the exact amount depends on which plan you choose. Part A, which covers hospital stays, has no monthly premium for most people, but the deductible you pay when admitted is going up to $1,676 from $1,632.

The increases are not uniform across all beneficiaries. If your income is higher, you will pay a surcharge on top of the standard Part B premium — this surcharge structure itself is changing in 2025. If you receive Supplemental Security Income (SSI) or have limited income, you may be protected from some increases through programs like the Part B premium subsidy. The key is understanding which part of Medicare affects you and whether your personal situation qualifies you for relief.

Key Takeaways

  • Part B premiums are rising to $185 per month in 2025, an increase of nearly $10 from 2024.
  • Part D prescription drug premiums vary by plan, so comparing your current plan to alternatives in the annual enrollment period can lower your cost.
  • Higher-income beneficiaries pay surcharges on Part B and Part D premiums based on tax return income from two years prior.
  • People with limited income may be protected from premium increases through the Part B premium subsidy or Extra Help program for Part D.
  • You have until December 31, 2025, to make changes to your coverage during the annual enrollment period, which runs October 15 through December 7 each year.

Part B Premium Increase and Who Pays It

The standard Part B premium for 2025 is $185 per month. This covers doctor visits, outpatient procedures, lab work, and durable medical equipment. If you enroll in Part B after age 65, you will also pay a late enrollment penalty of 10 percent for each year you delayed, added permanently to your premium.

If your modified adjusted gross income (MAGI) from your 2023 tax return exceeds certain thresholds, you will pay an additional surcharge called Income-Related Monthly Adjustment Amount (IRMAA). For 2025, the income brackets and surcharge amounts have shifted. A single person with MAGI over $103,000 begins paying extra; married couples filing jointly start paying surcharges at $206,000. The surcharge can range from $69.90 to $277.60 per month on top of the standard premium, depending on your income level.

If you receive Social Security, Medicare will deduct your Part B premium directly from your check. If you do not receive Social Security, you will receive a bill from Medicare each month.

Part D Prescription Drug Premium Changes

Part D premiums are set by individual insurance companies and vary widely by plan. There is no single "Part D premium" — instead, each plan you could choose has its own monthly cost. On average, Part D premiums are rising in 2025, but some plans are staying flat or even decreasing while others rise significantly.

The annual enrollment period — October 15 through December 7 — is when you can switch to a different Part D plan without penalty. If you stay in the same plan, your premium will be whatever that plan charges for 2025. If you switch plans, you pay the new plan's premium starting January 1. Many people find lower-cost plans by comparing their current medications against available options during this window.

Like Part B, Part D premiums also trigger IRMAA surcharges for higher-income beneficiaries. The income thresholds are the same as Part B, but the surcharge amounts are different and are calculated separately.

Part A Deductible and Hospital Coverage Costs

Part A has no monthly premium for most people who paid Medicare taxes while working. However, the deductible — the amount you pay out of pocket before Part A coverage kicks in — is rising to $1,676 for 2025, up from $1,632 in 2024.

This deductible applies to each hospital stay or skilled nursing facility stay. If you are admitted to the hospital on January 15 and discharged on January 20, you pay the full $1,676 deductible. If you are readmitted on February 1, you pay another $1,676 deductible because it is a new benefit period. After you meet the deductible, Part A covers your hospital costs in full for the first 60 days of a hospital stay.

Coinsurance amounts — what you pay per day after day 60 of a hospital stay — are also increasing. From days 61 to 90, you pay $419 per day in 2025, up from $408. Days 91 and beyond cost $838 per day.

Income-Related Surcharges and Who Pays Them

If your income is above certain levels, Medicare calculates surcharges based on your Modified Adjusted Gross Income (MAGI) from your tax return from two years before the current year. For 2025 premiums, Medicare uses your 2023 tax return. This means if your income changed significantly in 2024, you will not see that reflected in your 2025 premiums — but you will see it in your 2026 premiums.

The 2025 income thresholds for IRMAA surcharges are: single filers at $103,000; married filing jointly at $206,000; married filing separately at $103,000. If your MAGI falls between $103,000 and $129,000 (single), you pay a surcharge of $69.90 per month on Part B. The surcharge increases in brackets, reaching $277.60 per month for single filers with MAGI over $499,999.

If your income drops significantly — due to retirement, job loss, or death of a spouse — you can request a life-event exemption from IRMAA surcharges. You must contact Social Security within 60 days of the event and provide documentation. Without this request, you will continue paying the surcharge based on your old income.

Programs That Help Lower Premiums for Lower-Income Beneficiaries

The Part B Premium Subsidy (also called the Part B Savings Program) helps people with limited income pay their Part B premiums. To may have access to, your income must fall between 135 and 175 percent of the federal poverty level, and your resources must be under $8,820 (single) or $13,230 (married). If you may have access to, your state Medicaid program pays your Part B premium directly to Medicare.

The Extra Help program (Low-Income Subsidy) reduces Part D premiums and out-of-pocket costs for prescription drugs. Income limits are similar to the Part B Premium Subsidy. If you may have access to, you pay a reduced premium — sometimes $0 — and your copayments for drugs are capped at much lower amounts than standard Part D plans.

To check whether you may have access to for either program, contact your state Medicaid office or call 1-800-MEDICARE. You can also explore online through Social Security's website. These programs are not automatic — you must request them.

How to Review Your Coverage During Open Enrollment

The annual enrollment period runs from October 15 through December 7 each year. During this time, you can change your Part D plan, switch to or from a Medicare Advantage plan, or add or drop Medigap coverage. Changes take effect January 1 of the following year.

To compare plans, visit Medicare.gov and use the Plan Finder tool. You will need your current medications and preferred pharmacies to get accurate cost estimates. Many people find that switching plans saves $500 to $1,500 per year, especially if their medications or health needs have changed.

If you miss the open enrollment window, you can still make changes only if you experience a may have access to life event — such as loss of employer coverage, moving to a new state, or death of a spouse. You have 60 days from the event to make changes.

Frequently Asked Questions

Why do Medicare premiums go up every year?

Medicare premiums are adjusted annually based on projected program costs, inflation in healthcare, and changes in the number of beneficiaries. Congress does not set the premiums directly — they are calculated by Medicare actuaries using formulas established in law. Part B premiums, for example, are set so that beneficiaries pay 25 percent of program costs and the federal government pays 75 percent.

Can I delay Part B enrollment to avoid the premium increase?

Delaying Part B enrollment after age 65 results in a permanent 10 percent penalty for each year you delay, added to your premium for life. This penalty usually costs far more than any premium increase you might avoid. Enroll in Part B when you first become may be able to access at 65, unless you have employer coverage that qualifies you for a special enrollment period.

What happens if I cannot afford my Medicare premiums?

Contact your state Medicaid office to see whether you may have access to for the Part B Premium Subsidy or Extra Help program. If your income is above those thresholds but you still struggle, ask Medicare about a payment plan or hardship exemption. You can also call 1-800-MEDICARE to discuss your options with a representative.

If my income dropped in 2024, will my 2025 premiums be lower?

No. Your 2025 premiums are based on your 2023 tax return income. Your 2024 income changes will affect your 2026 premiums. However, if you experienced a major life event in 2024 — such as job loss or death of a spouse — you can request an IRMAA life-event exemption within 60 days of the event to lower your 2025 premiums.

Should I switch my Part D plan every year?

Not necessarily, but you should review your plan every year during open enrollment. Formularies (the list of covered drugs) change, copayments change, and new plans enter the market. If your medications have not changed and your current plan's costs are stable, staying put is fine. If your costs are rising or your medications are no longer covered, switching usually saves money.