The Centers for Medicare & Medicaid Services (CMS) has announced cost adjustments for 2025, with moderate increases for most beneficiaries but steep hikes for high earners.
Part B Premium Increases
While Medicare Part A remains premium-free for most, Part B—which covers doctor visits and outpatient services—will see a rise. Starting January 2025, the standard monthly premium will increase to $185, up from $174.70 in 2024—a 5.9% hike, surpassing the latest Social Security cost-of-living adjustment.
For high earners, costs will be significantly higher. California beneficiaries with a 2023 income above $106,000 ($212,000 for couples) will pay $259 per month. Those earning $500,000+ ($750,000+ for couples) will see premiums jump to $628.90.
Part D & Deductibles
The average Medicare Part D prescription drug plan premium will drop to $46.50 monthly in 2025. However, high earners will face additional surcharges between $13.70 and $85.80.
The Medicare Part B annual deductible will increase to $257, while Part A’s hospital deductible rises to $1,676.
Beneficiaries experiencing income-reducing events (e.g., retirement, divorce) can appeal surcharges via SSA.gov. For full cost details, visit Medicare.gov or call 800-633-4227.
