Medicare Part B Premium to Climb 5.9% in 2025

Medicare program managers will increase the monthly premium for Medicare Part B outpatient and physician services coverage 5.9% in 2025.

The monthly cost for people not affected by late-enrollment penalties will be $185 for individuals who earn up to $106,000 per year and married couples who earn up to $212,000 per year, according to the Centers for Medicare and Medicaid Services.

For enrollees in the highest income bracket — more than $500,000 for an individual and $750,000 for a married joint filer — the monthly premium will be $629.

The deductible will increase 7.1%, to $257.

The Medicare Part B increases compare with a 2025 Social Security cost-of-living adjustment of 2.5%, which will push the average Social Security benefit check to $1,976 per month.

What it means: For clients who can easily afford the higher Medicare Part B payments, the key takeaway may be CMS officials' assumption that 2025 retiree health care cost inflation will be about 7%.

Medicare basics: Medicare is a federal program that provides health benefits for 68 million Americans who are at least 65, have severe kidney disease or are disabled.

Medicare Part B users pay for the coverage while they have the coverage.

For Medicare Part A inpatient hospitalization plan coverage, workers pay the premiums for themselves and their spouses by paying payroll taxes during their working years.

Some clients may have to pay Medicare Part A premiums if they have moved to the United States late in life and have not spent much time working here.

Medicare Part A: The full premium for Medicare Part A hospitalization coverage will rise 2.6% in 2025, to $513 per month.

The Part A deductible will increase 2.7%, to $1,676 for the year.