Shocking News: Millions of Seniors Face Major Medicare Price Hike Starting January 2025

Seniors receive both good and unpleasant news. The good news is that their Social Security benefits have been adjusted to reflect the cost of living; the bad news is that Medicare’s costs have also risen. The Centers for Medicare and Medicaid Services (CMS) has informed the public that premiums for its Part B plan will increase by approximately 6% in 2025.

Those who choose to enroll in Part B will have the amount removed automatically from their Social Security checks.

• Part A, which covers inpatient treatment in hospitals and other facilities, is premium-free for all but around 1% of beneficiaries, thanks to taxes paid by most retirees while working.
• Part B, which covers doctor visits, outpatient care, preventive treatments such as immunizations, medical equipment such as wheelchairs, and home health care, is not free. Although it is significantly less than paying out of pocket or through a private insurance company without the assistance of a firm or CMS, recipients will still be required to pay a monthly fee to use this service.
• Part C, sometimes known as a Medicare Advantage plan, is provided by Medicare-approved private organizations; most include medication coverage (Part D). 
• Part D helps pay for prescription medications. Private insurance companies run Part D prescription coverage plans according to Medicare guidelines. You can purchase Part D separately.
• When it comes to Part B, most retirees prefer it over Part C because it is significantly less expensive than going via an insurance company for most Americans. Most services are covered under Parts A and B, and retirees can have a healthy, happy life combined with Part D, which is for individuals who need a lot of prescriptions.

What is the Medicare Part B premium in 2025?

According to a CMS statement posted on Friday, the standard monthly premium for Medicare Part B enrollees would increase by $10.30, or approximately 6%, to $185.00 from $174.70 in 2024. In addition, the annual deductible for all Medicare Part B participants will increase from $240 to $257 in 2025. This is not surprising to retirees, as the CMS states that the increase is due to “projected price changes and assumed utilization increases that are consistent with recent reality.” Medicare premiums do not increase year after year, despite appearances. In 2023, the premium for Part B was $164.90, more than $5 less than the previous year.

In general, married people who lived with their spouses at any time during the year and filed separate tax returns with a modified adjusted gross income of $106,000 or less must pay only the standard Medicare Part B premium of $185 per month. Those with earnings between $106,000 and $394,000 will pay an IRMAA of $406.90 in addition to the $185 premium for $591.90 each month. Seniors with salaries above $394,000 will have an IRMAA of $443.90, increasing their total monthly cost, including the standard premium, to $628.90.