WASHINGTON — Americans will have to pay more for their Medicare premiums next year, according to the Centers for Medicare and Medicaid Services.
Seniors with Part B plans will see an increase of about 6%, with the standard monthly premium rising to $185 in 2025 — a $10.30 increase from the current $174.70 cost. The new rates were announced on Friday, Nov. 8.
Along with those premium increases, Medicare beneficiaries will see their annual Part B deductible rise to $257 in the incoming year, marking an increase from the 2024 deductible of $240.
Part B premiums cover costs for physicians' services, outpatient hospital services, certain home health services, durable medical equipment and other health services not covered by Medicare Part A.
Part A plans typically cover inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation and some home health care services, according to CMS. Roughly 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, the agency said.
The CMS said the change was due to "projected price changes and assumed utilization increases that are consistent with historical experience."
The monthly rates for Part B premiums are determined by provisions of the Social Security Act and since 2007 have been based on the beneficiaries' income.
Medicare premium rates for 2025 come just a month after the Social Security Administration announced the cost-of-living adjustments for next year. The 2.5% COLA increase starting January will give retirees an average increase of $50 each month and could help cushion the higher healthcare premiums.
