Dear Savvy Senior,<\/p>\n\n\n\n
I know there will be a small 2.5 percent cost-of-living increase in Social Security benefits next year, but what about Medicare? What will the Medicare Part B monthly premiums be in 2025, and when do the surcharges kick in for higher income beneficiaries?<\/p>\n\n\n\n
Medicare Beneficiary<\/p>\n\n\n\n
Dear Beneficiary,<\/p>\n\n\n\n
The Centers for Medicare and Medicaid Services recently announced their cost adjustments for 2025 and the increases for premiums and out-of-pocket costs for most beneficiaries will be moderate. But if you\u2019re a high earner, you\u2019ll pay significantly more. Here\u2019s what you can expect to pay in 2025.<\/p>\n\n\n\n
Part B Premium<\/p>\n\n\n\n
While Medicare Part A, which pays for hospital care, is premium-free for most beneficiaries, Part B, which covers doctor visits and outpatient services does have a monthly premium.<\/p>\n\n\n\n
Starting in January, the standard monthly Part B premium will be $185, up from $174.70 in 2024. That $10.30 bump represents a 5.9 percent increase, which is more than double the most recent Social Security cost-of-living adjustment which was 2.5 percent.<\/p>\n\n\n\n
But if you\u2019re a high earning beneficiary, which makes up about 8 percent of all Medicare recipients, you\u2019ll have to pay more. Medicare surcharges for high earners, known as the income-related monthly adjustment amount (or IRMAA), are based on adjusted gross income (AGI) from two years earlier, which means that your 2025 Part B premiums are determined by your 2023 AGI, which is on line 11 of the IRS tax form 1040.<\/p>\n\n\n\n
Here\u2019s how it breaks down. If your 2023 income was above $106,000 up to $133,000 ($212,000 up to $266,000 for married couples filing jointly), your 2025 Part B monthly premium will be $259.<\/p>\n\n\n\n
Monthly Part B premiums for singles with an income between $133,000 and $167,000 ($266,000 and $334,000 for joint filers) will rise to $370.<\/p>\n\n\n\n
Individuals earning above $167,000 up to $200,000 ($334,000 to $400,000 for joint filers) will see their monthly Part B premium increase to $480.90.<\/p>\n\n\n\n
Those with incomes above $200,000 up to $500,000 ($400,000 to $750,000 for joint filers), will pay $591.90 per month in 2025. And single filers with income of $500,000 or more ($750,000 or more for joint filers) will pay $628.90 per month.<\/p>\n\n\n\n
Part D Premium<\/p>\n\n\n\n
If you have a stand-alone Medicare (Part D) prescription drug plan, the average premium in 2025 will be $46.50 per month for most beneficiaries, down from $53.95 in 2024. But again, for high earners with annual incomes above $106,000 ($212,000 for joint filers) you\u2019ll pay a monthly surcharge of $13.70 to $85.80 (based on your income level) on top of your regular Part D premiums.<\/p>\n\n\n\n
How to Contest Income<\/p>\n\n\n\n
Beneficiaries that fall into any of the high-income categories and have experienced certain life-changing events that have reduced their income since 2023, such as retirement, divorce or the death of a spouse, can contest the surcharge. For more information on how to do this, see \u201cMedicare Premiums: Rules for Higher-Income Beneficiaries\u201d at SSA.gov\/benefits\/medicare\/medicare-premiums.html.<\/p>\n\n\n\n
Other Medicare Increases<\/p>\n\n\n\n
In addition to the Part B and Part D premium increases, there are other cost increases you should be aware of. For example, the annual deductible for Medicare Part B will be $257 in 2025, which is $17 more than the 2024 deductible of $240. And the deductible for Medicare Part A, which covers hospital services, will increase to $1,676 in 2025. That\u2019s $44 more than the 2024 deductible of $1,632. There are no surcharges on Medicare deductibles for high earners.<\/p>\n\n\n\n
For more information on all the Medicare costs for 2025 visit Medicare.gov\/basics\/costs or call 800-633-4227.<\/p>\n\n\n\n
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of \u201cThe Savvy Senior\u201d book.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dear Savvy Senior, I know there will be a small 2.5 percent cost-of-living increase in Social Security benefits next year, but what about Medicare? What will the Medicare Part B monthly premiums be in 2025, and when do the surcharges kick in for higher income beneficiaries? Medicare Beneficiary Dear Beneficiary, The Centers for Medicare and…<\/p>\n","protected":false},"author":1,"featured_media":25349,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/posts\/25348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/comments?post=25348"}],"version-history":[{"count":0,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/posts\/25348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/media\/25349"}],"wp:attachment":[{"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/media?parent=25348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/categories?post=25348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accfo.org\/pgjkpzsd\/wp-json\/wp\/v2\/tags?post=25348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}