The standard monthly premium for Medicare Part B — the part of Medicare that covers doctor’s visits, routine cancer screenings, home health care and other outpatient services — will be $185 for 2025, the Centers for Medicare & Medicaid Services (CMS) announced Nov. 8. This is an increase of $10.30 from 2024 and is similar to the nearly $10 monthly premium hike seen in 2024, from 2023. Annual deductibles for Part A and B are also set to rise in the new year.

Part B beneficiaries with annual individual incomes greater than $106,000 will pay more than the standard premium, though how much more depends on their income. CMS says income-related monthly adjustments affect roughly 8 percent of people with Part B insurance.

The annual deductible for all Medicare Part B beneficiaries is also going up in 2025, rising from $240 in 2024 to $257. Medicare beneficiaries typically pay 20 percent of the cost for each Medicare-covered service or item after they’ve met their deductible.

In a news release, CMS explained that the Part B increases for the standard monthly premium and deductible are “mainly due to projected price changes and assumed utilization increases that are consistent with historical experience.”

The news from CMS comes about a month after the Social Security Administration (SSA) announced a 2.5 percent cost-of-living-adjustment (COLA) in 2025, which will bump up the average Social Security retirement benefit by nearly $50 a month. Monthly premiums for most Part B beneficiaries are deducted directly from their Social Security payments.

Part A costs are also increasing 

The vast majority of people with Medicare do not pay a monthly premium for Part A, which covers inpatient care, hospice care and stays at skilled nursing facilities. However, there is a deductible for beneficiaries if they are admitted to the hospital.

In 2025, this deductible will be $1,676 a stay, up $44 from $1,632 in 2024, CMS announced. If the hospital stay goes beyond 60 days, beneficiaries will pay a coinsurance amount of $419 per day through day 90. This was $408 in 2024.

The small share of people that do pay a monthly Part A premium will also pay more in 2025. The full Part A premium will be $518 a month, a $13 increase from 2024.

Part D will have new out-of-pocket spending limit

Earlier this fall, CMS announced the average monthly premium for a stand-alone Medicare Part D plan (prescription drug coverage) is projected to decrease from $41.63 in 2024 to $40 in 2025. (This is just the average; some plan premiums will increase.)

Similar to Part B premiums, some high-earning beneficiaries will pay more for their monthly premiums depending on their annual income. For example, someone earning more than $106,000 a year and less than or equal to $133,000 will pay an additional $13.70 for their monthly Part D premium, CMS says.

One big change coming in 2025 for Part D is a $2,000 out-of-pocket cap on prescription drugs. This historic change backed by AARP is expected to help nearly 3.2 million Americans save money next year when they fill their prescriptions

Medicare Part B often plays the role of the unsung hero, covering a range of essential medical services and supplies. This includes outpatient care, preventive services, diagnostics, and even certain home health services. It’s like your medical toolbox, ready for almost any situation.

Looking into 2025, keep an eye out for a few significant changes in the premium landscape. Premiums are likely to shift due to various factors, with inflation leading that charge. As the cost of living rises, premiums tag along, making it crucial for beneficiaries to budget accordingly.

Inflation is no stranger to the world of healthcare costs. When the price of everything else starts climbing, Medicare premiums notice too. This year, inflation might just be the key player influencing how much you pay, so staying informed could help you plan better.

To hop on the Medicare Part B train, you need to meet specific eligibility criteria. Getting those benefits requires being at least 65 years old, a citizen or lawful permanent resident, or having received disability benefits for at least 24 months. Check those boxes and you’re in!

Navigating through cost-sharing elements like deductibles and copayments can feel like a maze. Thankfully, financial assistance programs exist to help shoulder the burden. It’s important to dig into these programs and find out if you’re eligible to lighten the load.

Now, if you’re a high roller in the income department, your premiums might include a surcharge. Higher income means higher premiums, a fact that catches many by surprise. Make sure to factor in how your income might affect your payments and plan accordingly.

Medicare Part B isn’t just about reacting to health issues, it’s about prevention too. It covers preventive services which keep you ahead of the game, helping you maintain better long-term health. Taking advantage of these services means fewer problems down the road.

Getting your enrollment game right could mean the difference between maximizing benefits or missing out. Whether you’re new to Medicare or looking to switch plans, having a game plan for enrollment is key. Consider deadlines and any possible penalties for late enrollment.

Expert advice can really shine a light on unknown territory. Experts might highlight changes or provide insights on what the future holds for Medicare beneficiaries. Tapping into their knowledge can arm you with information that might not be obvious at first glance.

Addressing common questions from beneficiaries can clear up heaps of confusion. Whether wondering about premium adjustments or eligibility specifics, FAQs often hold the answers. Filter through them for peace of mind and that ‘aha!’ moment when things start to make sense.