Seniors will pay more for Medicare in 2025. Here’s what you should know.

America’s seniors will pay more for their health care in the new year as the Centers for Medicare and Medicaid Services (CMS) announced that premiums for its Part B plan will rise by about 6% in 2025.

Part B covers doctor’s visits, outpatient care, preventive services such as vaccinations, medical equipment such as wheelchairs, and home health care. (Part A, which covers inpatient care in hospitals and other facilities, is exempt from contributions for all but about 1% of beneficiaries because most retirees paid taxes while working.)

How much is the Medicare Part B premium for 2025?

The standard monthly premium for Medicare Part B enrollees will rise $10.30, or about 6%, to $185.00 in 2024, from $174.70, CMS said Friday.

Meanwhile, the annual deductible for all Medicare Part B beneficiaries will increase from $240 to $257 in 2025.

The reason for the premium and deductible increases in 2025 is due to “projected price changes and assumed utilization increases that are consistent with historical experience,” according to the Centers for Medicare & Medicaid Services.

The premium was $164.90 in 2023, while costs fell by just over $5 compared to the previous year. a rarity Waste.

How does this compare to the Social Security COLA?

Medicare Part B premiums generally outperform inflation as well as Social Security’s annual cost of living adjustment (COLA).

Annual inflation rose 2.4% in Septemberwhile the Social Security COLA will be for next year 2.5%or an average of $50 more per household.

What do higher-income Medicare enrollees pay?

Because a beneficiary’s monthly Part B premium is based on their own income, wealthier Americans also pay an Income-Related Monthly Adjustment Amount (IRMAA), which affects about 8% of those with Medicare Part B, according to CMS.

• Anyone who is married and living with their spouse at any time of the year but files separate tax returns with a modified adjusted gross income of $106,000 or less will only pay the Medicare Part B premium of $185.00 per month .
• Beneficiaries with income greater than $106,000 but less than $394,000 want an IRMAA payment of $406.90 plus the standard value of $185.00, or $591.90 per pay monthly.
• Seniors earning more than $394,000 pay $443.90 in IRMAA and the standard $185.00, for a total of $628.90 per month.

How does this affect Social Security benefit payments?

Medicare enrollees who already receive Social Security benefits can expect the new 2025 Part B premium to be automatically deducted from their Social Security checks in January.

Anyone who doesn’t yet receive Social Security benefits but pays Medicare Part B each month will have to make sure they pay the increased amount starting in January.