Millions of seniors in the US will have to pay much more for Medicare starting January 1, 2025 – Everything is official

Seniors are given both positive and negative news. The good news is that their Social Security benefits have increased to reflect the cost of living. The bad news is that Medicare’s costs have gone up as well.According to CMS, the cost of Part B plans will increase by 6% in 2025.

The cost will be automatically deducted from your Social Security check when you enroll in Part B.

There are four parts to Medicare.

• Part A, which covers inpatient care in hospitals and other facilities, is premium-free for all but about 1% of beneficiaries due to taxes paid by most retirees while they worked.
• Part B, which covers visits to doctors, outpatient care, preventative services such as vaccines, medical equipment like wheelchairs as well as home health care carries a cost. Although it is much lower than paying out of pocket or through a private insurance company without the support of a company or CMS, beneficiaries will still need to pay a monthly fee to be able to access this service.
• Part C, better known as Medicare Advantage plan, is offered by Medicare-approved private companies, most include drug coverage (Part D). Each company will offer their services in different parts of the country, with different prices and coverages depending on a multitude of factors.
• Part D helps cover the cost of prescription drugs (including many recommended shots or vaccines). Plans that offer Part D drug coverage are run by private insurance companies that follow rules set by Medicare. You can purchase Part D independently.

Because Part B is less expensive than insurance companies for the majority of Americans, most retirees opt for it over Part C. The majority of services are covered by Parts A and B, which enable retirees to lead happy and healthy lives. Part D is especially helpful for people who need various drugs.

What is the Medicare Part B premium for 2025?

Medicare Part B subscribers’ basic monthly payment will rise by $10.30, or almost 6%, to $185.00 from $174.70 in 2024, according to a CMS announcement on Friday. The annual deductible for all Medicare Part B users will increase from $240 to $257 in 2025. The increase, according to CMS, should not come as a surprise to retirees because it is the result of anticipated price adjustments and presumed utilization increases that are in line with past trends.

Medicare costs don’t go up every year, despite what many people think. The Part B premium was $164.90 in 2023, more than $5 less than the year before.

Because Medicare Part B monthly premiums are income-based, people with higher incomes must pay an additional Income-Related Monthly Adjustment Amount (IRMAA). Approximately 8% of Medicare Part B enrollees are impacted by this, per CMS data.

The regular Medicare Part B premium is $185 per month for married individuals with a modified adjusted gross income of $106,000 or less who file separate tax returns. In addition to the $185 premium, people earning between $106,000 and $394,000 per month will also pay an IRMAA of $406.90, for a monthly total of $591.90. Seniors who make more than $394,000 a year will have an IRMAA of $443.90, which means that, adding the regular premium, their monthly payment will be $628.90.

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