America’s seniors will see higher Medicare costs in 2025, as the Centers for Medicare & Medicaid Services (CMS) announces a 6% increase in Part B premiums.
This change will impact millions of seniors enrolled in the program, which covers services like doctor visits, outpatient care, preventive services, and medical equipment.
Starting in January 2025, the standard monthly premium for Medicare Part B will rise from $174.70 to $185.00, a $10.30 increase.
Additionally, the annual deductible for Part B will climb from $240 to $257.
CMS attributes these adjustments to projected price increases and higher demand for medical services, in line with historical trends.
The agency notes that these changes are necessary to manage rising healthcare costs.
This increase follows a rare drop in premiums for 2023, when Part B premiums decreased by over $5—a temporary adjustment.
For seniors already receiving Social Security, the higher premium will be automatically deducted from their benefits starting in January.
Those not yet drawing Social Security benefits will need to pay the new premium directly.
Meanwhile, Medicare Part A, which covers hospital stays and inpatient services, remains premium-free for most beneficiaries, thanks to payroll taxes paid during their working years.
Only a small fraction—about 1%—of enrollees pay a premium for Part A coverage.
