Medicare Costs 2025

More than 66 million Americans rely on Medicare for health coverage, and experience cost changes year to year. In 2025, several Medicare costs are going up, so it’s important to know what to expect. Here, we’ll review key changes to Medicare premiums and deductibles so you’re not caught off guard.

A Quick Note on Medicare costs

Medicare has certain standard costs that apply to all enrollees. But ultimately, your costs will depend on the specific coverage you choose and, in some cases, your income. Use this summary as an overview of the Medicare costs you might be looking at in 2025 but remember that there are different pieces of the puzzle to account for as each individual is different.

Medicare Part A

Most enrollees don’t pay a premium for Medicare Part A, which covers inpatient hospital care. Enrollees with 40 quarters of creditable coverage or more get Part A for $0 per month. A quarter of coverage is a three-month period where you work and pay taxes toward Medicare.

If you have at least 30 quarters of coverage, your monthly Medicare Part A premium in 2025 will be $285. If you have fewer than 30 quarters of coverage, your monthly Medicare Part A premium in 2025 will be $518.

The Medicare Part A deductible in 2025 will be $1,676 (up from $1,632 in 2024) per inpatient hospital stay, which covers your first 60 days of care. Beyond that, you’ll pay a daily coinsurance rate of $419 for days 61 through 90 (up from $408 in 2024). After 90 days of a continuous hospital stay, you’re forced to dip into your lifetime reserve days at a rate of $838 per day (up from $816 in 2024). A Medigap plan could help cover the costs that Original Medicare does not pay and is recommended if you don’t sign up for a Medicare Advantage plan.

Medicare Part B

The standard monthly Medicare Part B premium in 2025 is $185 (up from $174.70 in 2024). If you’re a higher earner, you’ll unfortunately be assessed a surcharge on your Part B premiums known as income-related monthly adjustment amount (IRMAA).

IRMAA is based on your modified adjusted gross income, MAGI, from two years ago. Which means, any IRMAA you’re assessed in 2025 is based on your MAGI from 2023. IRMAA in 2025 applies to those whose income was over $106,000 for single tax-filers and $212,000 for joint filers.

Medicare Part B enrollees also pay an annual deductible before full coverage kicks in. The Medicare Part B deductible in 2025 is $257 (up from $240 in 2024).

Medicare Part C

Medicare Part C, also known as Medicare Advantage, is an alternative to original Medicare that works more like traditional workplace insurance. Each Medicare Advantage plan charges its own monthly premium, with many plans charging $0 beyond the cost of Part B.

One nice thing about Medicare Advantage plans is that they limit your out-of-pocket maximum, or MOOP, each year. There’s no universal Medicare Part C MOOP for 2025, as each plan sets its own limit for out-of-pocket spending. The Medicare Part C in-network MOOP for 2025 is $9,350. For in- and out-of-network spending combined, it's $14,000.

Medicare Part D

If you enroll in Original Medicare, you’ll want to choose a Part D drug plan. The average monthly Medicare Part D Premium in 2025 is $46.50 (up from $34.70 in 2024).

Some Medicare Part D plans also have a deductible. The maximum Medicare Part D deductible in 2025 $590 (up from $545 in 2024).

In 2025, all Medicare plans have a $2,000 out-of-pocket maximum coverage gap for prescription drugs. From there, you’re automatically bumped into Medicare Part D’s catastrophic phase, which means you’re done paying for covered medications out of pocket.

Understanding your Medicare costs

Figuring out what you’ll spend on Medicare in 2025 can be confusing. Make a list of your premiums and deductibles as a starting point and read up on the additional costs you may be subject to based on your plan. If you need further guidance, contact a licensed Medicare agent at NACOLG to see how they can help you navigate your 2025 Medicare spending.

Source: Medicare Costs 2025