2025 Medicare Deductibles and Premiums Released
Hello Toni:
In the new Medicare & You Handbook that I received about a month ago, I cannot find what the 2025 Medicare costs and premiums will be. I would like to know this information because I have been diagnosed with a heart condition and will need to undergo several heart surgeries next year. I have looked online and cannot find the costs. Do you have any idea what the 2025 Medicare costs will be? Thank You, Carolyn from Memphis, Tenn
Hello Carolyn:
Every year the Medicare and You handbook is mailed out before October 1 to all Medicare beneficiaries to help guide them through the Medicare Annual Enrollment (AEP) period which ends December 7. The handbook states that at the time of printing that the premiums, and deductible amounts for Medicare Part A, Part B and Part D were not available.
I have good news for you, Carolyn, because the 2025 Medicare costs were released by CMS (Medicare) last Friday, Nov. 8th, with an increase for both Medicare Parts A and B premiums and deductibles.
Below are the 2025 Medicare Part A and B premiums and deductibles, as well as information on the 2025 Medicare Part D changes that affect Medicare’s Part D prescription drug costs.
2025 Medicare Parts A and B Premiums and Costs:
- Part A Costs (Inpatient Hospital): The new 2025 Part A inpatient hospital deductible will be an increase of $44 from $1,632 in 2024 to $1,676, for 2025. The Part A deductible starts over every 60 days. It is not a once-a-year deductible but 6 times a year. Under Part A is Medicare Skilled Nursing and the 2025 costs will be days 1-20 $0 copay per day and days 21- 100 will be $209.50 per day.
- Part B Costs (Medical): The new 2025 Part B medical/doctor deductible will increase by $17 from $240 deductible in 2024 to $257 beginning January 1, 2025. After the deductible is met, Medicare pays 80% of the Medicare approved amount and the Medicare beneficiary pays the remaining 20% of the Medicare approved amount.
- Part B Premium: New premium for 2025 has an increase of $10.30 from $174.70 in 2024 to $185.00 beginning January 1, 2025. Those with an income is higher than $106,000 as an individual or $212,000 as a married couple will pay more in Medicare Part B premium beginning January 1, 2025. (The Part B IRMAA premiums for higher income earners were not released on Nov.8.)
2025 Medicare Part D costs and co-pays are explained below:
- Initial Deductible: will increase by $45 from $545 in 2024 to $590 Jan. 1, 2025.
- Initial Coverage: has 5 drug-tier stages; the Part D plan pays its share of the cost of your drugs, and you pay your share until the maximum amount of $2,000 out-of-pocket is met. Then you move into the Catastrophic Coverage stage and pay $0.
- Total Out of Pocket: Effective January 1, 2025, the Donut Hole (Coverage Gap) will no longer exist, and your out-of-pocket will be $2,000.
Jan. 1 of each year, the process starts all over again with a new Medicare Prescription Drug plan and new initial deductible and maximum initial coverage limit.
Medicare’s new Prescription Payment Plan, which is a new payment option begins Jan.1,2025, to help manage your out-of-pocket drug costs by spreading your monthly prescription drug costs throughout the year from January-December. For more information about the payment plan, visit www.medicare.gov or call your Medicare Part D plan.
Explore your options during AEP, because with Medicare, it’s what you DON’T know that will hurt you!
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