Medicare Costs: Premiums, Deductibles, and Out-of-Pocket Expenses

Medicare Part A Changes

• Premium: Those who work for 30 to 39 quarters in their lifetime will pay $285 per month in 2025, an increase of $7 from the 2024 monthly premium. Those who have worked less than 30 quarters in their lifetime will pay $518 per month in 2025, an increase of $13 from the monthly premium in 2024. 

• Deductible: The Medicare Part A deductible has increased by $44 from the 2024 amount to $1,676 for each benefit period in 2025. 

• Coinsurance: The coinsurance cost applies when care is required longer than 60 days. Medicare Part A recipients will be charged $419 per day from days 61 through 90, an increase of $11 from 2024. After 90 days, you will be charged a coinsurance of $838 per day for lifetime reserve days, up $22 from 2024. Your benefit period renews once you have been out of the hospital or nursing home for 60 consecutive days, and your deductible and coinsurance rates are reset.

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Medicare Part B Changes

• Premium: The base cost for the Medicare Part B premium in 2025 is $185 for those who make less than $106,000 per year or couples who make less than $212,000 per year.

• Deductible: The deductible for Medicare Part B increased $17 from 2024, making it a total of $257 per year for 2025.

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Medicare Part C (Medicare Advantage) Changes

Cost changes for Medicare Part C, also known as Medicare Advantage, depend on your individual carrier and plan. As of 2025, CMS has instituted a new requirement for Medicare Advantage plans: a Mid-Year Enrollee Notification of Unused Supplemental Benefits. This list will be distributed in July and will list all supplemental benefits the beneficiary hasn’t used, the out-of-pocket cost for each one, and instructions on how to access the benefits.

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Medicare Supplement Plan (Medigap) Changes

Rates for Medicare Supplement plans, also known as Medigap, vary based on the carrier. Effective January 1, 2025, the annual deductible amount for Medicare Supplement Plans G, F, and J is $2,870. 

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Inflation Adjustments for High-Income Beneficiaries

High-income beneficiaries pay more from Medicare Part B and Part D. The income brackets began to be adjusted for inflation in 2020. In 2024, the start of the “high-income” range increased to $103,000 per year for individuals and $206,000 for married couples. The Part B premium for high-income beneficiaries ranges from $244.60 to $594 per month, depending on income.

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Prescription Drug Costs and Coverage

Medicare Part D (Prescription Drug Plan) Changes

Similar to Medicare Part C, Medicare Part D plan cost changes depend on your carrier and plan. For 2025, the annual out-of-pocket maximum is $2,000 and the deductible, which can vary depending on your plan, will be no more than $590 for Medicare Part D. Previously you would pay a copay or a 5% coinsurance fee for brand-name and generic prescription drugs covered by Part D. As a result of the Inflation Reduction Act, previous copays and coinsurance no longer apply to covered Part D drugs.

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Other Medicare Advantage Plan Updates

Those With End-Stage Renal Disease Can Join Medicare Advantage Plans

As of January 1, 2021, individuals with ESRD can also enroll in Medicare Advantage plans. Learn more about ESRD and Medicare Advantage plans.

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Telehealth and At-Home Care Expansions

Through March 31, 2025, Medicare beneficiaries can receive telehealth services at any location in the U.S., including your home. Beginning January 1, 2025, you must be in an office or medical facility located in a rural area (in the U.S.) for most telehealth services. Learn more about telehealth and Medicare.

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Updates to Preventive and Wellness Benefits

Colorectal Cancer Screening

As of 2025, Medicare has expanded its colorectal cancer screening coverage to include computed tomography colonography (CTC), also known as a virtual colonoscopy, alongside blood-based biomarker tests. 

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Dementia Support

In 2025, the GUIDE (Guiding an Improved Dementia Experience) program, which supports people with dementia and their caregivers, will expand its services. GUIDE offers a 24/7 support line, a care navigator to help find medical services and community-based assistance, caregiver training, and up to $2,500 a year for respite services.

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Mental Health Providers

As of 2025, more mental health providers can to enroll as Medicare providers. This includes addiction counselors, licensed mental health counselors (LMHCs), and marriage and family therapists (LMFTs).

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