Medicare Costs for 2025 Announced
The Centers for Medicare & Medicaid Services (CMS) recently announced the costs beneficiaries will pay for Medicare coverage in 2025, including coverage for Medicare Part A and Part B. These new costs take effect January 1, 2025.
Medicare Part A
Medicare Part A provides coverage for inpatient hospital care, skilled nursing facility stays (up to 100 days), certain home health services, and hospice care. Here are the updated costs for 2025:
- Premium: Most people get Part A for free because they, their spouse, or in some cases their parent, have paid Medicare taxes while working. However, for those who must buy Part A, the monthly premium in 2025 can be as much as $518.
- Hospital Stay: The inpatient deductible will be $1,676 per benefit period. If someone is in the hospital longer than 60 days, their cost-sharing will be as follows:
- Days 61–90: $419 per day
- Days 91–150: $838 per day
- Skilled Nursing Facility Stay: Medicare can cover up to 100 days in a skilled nursing facility when someone meets the criteria for Medicare to pay for this care. There is no cost for care for the first 20 days. For days 21-100, the beneficiary will have a daily co-pay of $209.50.
Medicare Part B
Medicare Part B covers outpatient care including doctor visits, outpatient hospital services, diagnostic tests, ambulance services, durable medical equipment, mental health services, and more. The updated costs for 2025 are as follows:
Monthly Premium
Everyone on Medicare is subject to a monthly Part B premium. In 2025, the standard premium will be $185/month, a $10.30 increase from $174.70 in 2024. Most people will pay this premium amount next year.
A small percentage of Medicare beneficiaries will pay a slightly lower amount because of Medicare's hold-harmless provision. This rule protects people who have their Part B premium deducted from their monthly Social Security check from a Part B premium increase that would exceed their Social Security benefits increase, to avoid leaving these beneficiaries with a lower net Social Security benefit in 2025 than they received in 2024. Social Security announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025, which should cover the increased Part B premium for most beneficiaries.
Beneficiaries with higher incomes will pay a higher premium for Medicare Part B. People with limited income and resources can qualify for Medicaid to pay their Part B premium through the Medicare Savings Programs or “Medicare Buy-In”.
Other Part B Costs in 2025
The annual deductible for 2025 will be $257, up $17 from $240 in 2024. This is the amount beneficiaries must pay out of pocket before their Part B coverage begins. Once the deductible is met, Original Medicare covers 80% of the cost for outpatient physical and mental health services, leaving beneficiaries responsible for the remaining 20%.
How Does My Coverage Impact My Premium?
Medicare beneficiaries must pay their monthly Part A (if applicable) and Part B premiums regardless of whether they have Original Medicare or a Medicare Advantage plan.
Original Medicare: Individuals with Original Medicare, who use the red, white, and blue Medicare card for services, and no additional insurance are responsible for the Part A and Part B deductibles and coinsurance outlined above.
Medicare Advantage Plans: Beneficiaries enrolled in a Medicare Advantage plan are subject to the deductibles, coinsurance, and copays set by their specific plan. Medicare Advantage Plan enrollees should review their Summary of Benefits for more details.
Dual Eligibles (Medicare and Medicaid): Individuals with both Medicare and Medicaid coverage use Medicaid to cover their Part A and Part B deductibles, coinsurance, and copays. They are only responsible for the small Medicaid copay required for the service they receive.
Dual eligibles enrolled in Community HealthChoices for their Medicaid can learn more about copays by contacting their plan directly or reviewing their plan’s Participant Handbook. Those who receive Medicaid through the ACCESS card can find additional information about copays here, or by calling the Medicaid Fee-for-Service helpline at 1-800-537-8862 for assistance with any billing questions.
More information about Medicare Part A and B costs in 2025 can be found here. We encourage readers who have questions about their Medicare coverage to contact PA MEDI at 1-800-783-7067.
