The Centers for Medicare & Medicaid Services (CMS) has announced updates to Medicare Part A, Part B, and Part D plans, detailing adjustments to premiums, deductibles, and coinsurance amounts. These changes are set to take effect in 2025.
Medicare beneficiaries should be aware that these changes could impact their overall healthcare costs in the coming year. Here’s a breakdown of the upcoming changes to be aware of, especially as a Medicare beneficiary.
Medicare Part A Changes in 2025
Medicare Part A coverage includes inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services. People who are over 65 years old or and have fewer than 40 quarters of coverage may voluntarily enroll in Medicare Part A, as can people with disabilities.
Individuals with more than 30 quarters of coverage can enroll for a monthly premium of $285 in 2025, a $7 increase from 2024. Individuals with less than 30 quarters of coverage and people with disabilities can enroll for a $518 monthly premium.
In 2025, the deductible for Medicare Part A inpatient hospital services will increase from $1,632 to $1,676 for the first 60 days of a benefit period.
The deductible for 61 to 90 days of inpatient hospital services will increase from $408 to $419.
For lifetime reserve days, the hospital coinsurance deductible increases from $816 to $838. The skilled nursing facility daily coinsurance for 21 to 100 days will have a deductible of $209.50, a $5.50 increase from $204 in 2024.
Medicare Part B Changes for 2025
In 2025, the baseline premiums for Medicare Part B will rise from $174.70 to $185 per month, or an increase of $123.60 per year. The annual deductible will also see a modest increase, from $240 in 2024 to $257 in 2025.
Additionally, individuals who received a kidney transplant and whose Medicare coverage ended 36 months post-operation will have the option to pay an extra premium starting at $110 and up to $552.10 for corresponding immunosuppressant drugs, according to a related press release by the CMS.
Medicare bases its premiums on the adjusted gross income reported on recipients’ tax returns. The $185 baseline premium for Part B applies to individuals who earn less than $106,000 and joint tax return filers who earn less than $212,000.
Individuals who earn $106,001 to $133,000 and joint filers who earn $212,001 to $266,000 will pay a $259 monthly premium. The maximum bracket, for those earning more than $500,000 and joint filers earning more than $750,000, will be $628.90 per month.
Recipients who are married and live with their spouse, but filed a separate return, may be eligible for premiums that start at $185.00 for incomes of $106,000 or less. Tax filers in the income bracket between $106,000—$393,999 are eligible for a monthly premium of $591.90. Incomes above $394,000 come with a premium of $628.90 per month.
Medicare Part D Changes for 2025
Part D covers prescription drug costs.
The income brackets for Part D work similarly to Part B brackets.
As with Parts A and B, Part D recipients typically pay premiums based on their income. These premiums can either be paid directly or deducted from Social Security checks.
Related: How to Increase Your Social Security Payments
Individuals making $106,000 or less and joint filers making $212,000 or less pay no premium for Medicare Part D. Premiums max out at $85 for individuals making more than $500,000 and joint filers making more than $750,000.
Other changes include a $2,000 annual cap on deductibles for medications for Medicare Part D recipients in 2025.
Medicare will also expand access to mental health care, including health risk assessments and referrals to appropriate care. There will also be more resources for caregivers.
However, Medicare is reducing access to at-home telehealth services, although it may still be available for mental and behavioral health.
The full Medicare Handbook for 2025 can be found here.
This article is for informational purposes only and does not constitute financial advice. Neither Fiscal Report nor the author receives a commission through links in this content.
