Medicare Part B is one of the cornerstones of Medicare’s health insurance, covering many common health expenses—doctor visits, outpatient care, preventive services, and certain medical devices and home health services.
Each year, changes in Medicare Part B premiums, deductibles, and copays are determined based on the terms of the Social Security Act, according to a CMS news release.
In 2025, the standard monthly premium for Medicare Part B will rise to $185, an increase of $10.30 per month from $174.70 in 2024, the Centers for Medicare and Medicaid Services (CMS) announced Nov. 8.
According to CMS, about 8% of Medicare Part B beneficiaries will pay higher than standard premiums as high earners. In 2025, Part B beneficiaries with annual individual incomes above $106,000 will pay more than the standard premium, which will vary depending on their income.
The annual deductible for Medicare Part B beneficiaries will increase to $257 in 2025, or an additional $17 from the 2024 annual deductible of $240.
According to the same news release, the increase for the 2025 Part B standard premium and deductible is “primarily due to expected price changes and assumed utilization increases that are consistent with historical experience.”
Most Medicare Part B premiums are automatically deducted from Social Security benefit payments.
The 2025 increase in Medicare premiums outpaces inflation, which reached an annual rate of 3.2 percent in October, and increases in Social Security benefits starting in January by 2.5 percent, or about $50.
Medicare Part A deductible and copay increases
CMS also announced Medicare Part A price increases in 2025.
Medicare Part A covers hospital stays, and sometimes covers home health care, skilled facility care, and hospice care.
While 99% of Medicare Part A beneficiaries pay no premiums (if they meet at least 40 percent of Medicare-covered employment requirements), deductibles and copays still apply.
Here are the 2025 Medicare Part A price changes:
- The inpatient hospital deductible will be $1,676 in 2025, an increase of $44 from $1,632 in 2024. This deductible covers the beneficiary’s share of the costs of the first 60 days of inpatient hospital care covered by Medicare during the benefit period.
- The copay for the 61st through 90th day of hospitalization will be $419 per day during the benefit period ($408 in 2024) and $838 per day for lifetime reserve days ($816 in 2024).
- The daily payment for extended care services 21 to 100 days in a benefit period in skilled nursing facilities will be $209.50 in 2025 ($204.00 in 2024).
For the 1% of Part A beneficiaries who pay the full premium, the amount will be $518 a month in 2025, an increase of $13 from 2024.
Changes in Medicare Part D prices
CMS also announced that like Part B, people with higher incomes will pay more for Medicare Part D (prescription drug coverage) monthly premiums in 2025.
Beneficiaries who file an amended adjusted gross income of $106,000 or more on individual tax returns will pay an additional $13.70 to $85.80 per month, depending on their income. Beneficiaries who are married and living with their spouse at any time during the year, but with adjusted adjusted gross income on separate tax returns from their spouse, with income of $106,000 or more, They will pay $78.60 to $85.80 a month extra, depending on their income. .
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