The federal government’s Medicare Program offers health insurance plans to elderly or disabled Americans. Recently, the Centre for Medicare and Medicaid Services (CMS) announced an increase in Medicare Part B Premium for 2025.
Social Security Medicare Premiums 2025
The federal government has started the health insurance program Medicare for 65 or older people or under 65 people who are suffering from serious disability or health conditions. According to reports, more than 66 million Americans are enrolled in this program and receive the benefits.
The Medicare Program has different plans for citizens to fulfill their needs. The government health insurance program is not only affordable but comes with lots of benefits. Like any other health insurance plan, the enrollees have to pay the premium. On 08 Nov 2024, the CMS announced the many changes in Medicare for 2025.
Americans enrolled in the Medicare Part B plan can expect their standard monthly premium to rise to $185 in 2025 from the current $174.70. The Part A beneficiaries who do not qualify for the premium-free plan will have to pay $285 or 518 in 2025 based on their working period and how long the individual or spouse paid Medicare taxes.
The CMS decides the Premium increases based on the healthcare costs and usage among the beneficiaries. Over the years, the Part B premium has increased by 5.9% which exceeds the average SSA COLA increase.
When do you have to pay a higher Medicare Premium?
As we have mentioned earlier, the premium increase depends on the US healthcare costs and usage, however, the premium for beneficiaries may change with the income of the beneficiaries. The enrollees who have modified Adjusted Gross income higher than the threshold will have to pay higher Medicare Part B Premiums.
The income threshold for 2025 Medicare Part B Premium is also out, so if your MAGI reported 2 years ago (2023) in your IRS return is more than the below threshold, you may have to pay more premium:
- When you file your federal income tax return as an individual or you are married but file separately, your income limit in 2025 is hiked to $106,000 from $103,000.
- When a married couple filed a federal income tax return jointly, their income threshold for the Medicare Premium was hiked to $212,000 for 2025 from the current $206,000.
Monthly Medicare Premium in 2025 based on your income limit
The Social Security Administration will inform you when your premium payment rises, however, based on the income limit and federal income tax filing status, you can check your monthly Medicare Premium payment below:
| MAGI in 2023 based on filing status | Your Monthly Medicare Part B Premium | ||
| Individual return | Married and File returns jointly | Married and filed returns separately | |
| $106,000 or below | $212,000 or below | $106,000 or below | $185 |
| $106,001 – $133,000 | $212,001 – $266,000 | N/A | $259 |
| $133,001 – $167,000 | $266,001 – $334,000 | N/A | $370 |
| $167,001 – $200,000 | $334,001 – $400,000 | N/A | $480.90 |
| $200,001 – $500,000 | $400,001 – $750,000 | $106, 001-$394,000 | $591.90 |
| $500,000 or above | $750,000 or above | $394,000 or above | $628.90 |
Medicare Part B Coverage 2025
The Medicare program has different parts to fulfill America’s healthcare needs and expenses, the Part B covers medical insurance, such as:
- Home health care
- Expenses you bear for health care providers and doctors’ services
- Healthcare where you don’t need to be hospitalized, outpatient care
- Expenses of durable medical devices or equipment required for health conditions
- Other preventive services costs that you may need due to the health conditions.
Apart from Part B, the program offers Parts A, C, and D, where Part A covers hospital insurance (inpatient care), Part C is Medicare Advantage that comes only when you are enrolled for either Part A or Part B, and Part D covers prescription drug expenses.
Part C and Part D plans are run by private companies, so the cost may vary depending on the provider. The Social Security Administration manages the enrollment and Medicare Premiums for millions of beneficiaries.
When and How Should You Pay the Medicare Premium?
The Medicare Part B Premium is automatically deducted from your Social Security check if they receive the Social Security benefits, otherwise, the beneficiaries will receive the premium bill from Medicare.
So, if you are enrolled in Part B only, Medicare will send you the premium bill every three months, otherwise, you will receive the bill every month. All the medicare premium bills must be paid before the 25 of the month you receive the bill.
The administration suggests the beneficiaries pay their premium at least 5 business days before the due date or more early if they are paying via paper check.
You can pay your Medicare Premium via a Medicare account or Medicare Easy Pay only and offline processes through Bank or Mail. If you are opting to pay your premium bill via mail use the return envelope that came with the premium bill, and send your Medicare-signed coupon with payment at:
- Medicare Premium Collection Center
- PO box 790355
- St. Louis, MO 63179-0355
Deductible for Medicare 2025
The deductible for Medicare is the yearly amount you pay before the insurance plans commence to pay for prescriptions or healthcare, with the rise in Medicare premium payment. The deductible of the Medicare program has also hiked.
For 2025, the Part B deductible is hiked to $257 from $240 (the 2024 yearly deductible). For Part A Medicare, the deductible amount has increased to $1676 for 2025 from $1632 in 2024 before the actual Medicare plan payment begins.
The Medicare Part B premium has increased in 2025, the elderly have to pay a higher premium to get the Medicare health insurance benefits for their medical and hospital coverage, so make sure you pay them on time.