As Social Security Rises, So Do Medicare Premiums
As Social Security Rises, So Do Medicare Premiums
Following the Social Security Administration's recent cost of living adjustment announcement of 2.5% for 2025, the Centers for Medicare & Medicaid Services (CMS) announced Medicare Part B premiums for 2025 will increase from $174.70 a month in 2024 to $185.00 a month in 2025, a base premium increase of 5.9%. Part D premiums for Medicare drug coverage also increased based on income.
The following table shows the income-related monthly adjustment amounts (IRMAA) for 2025 Part B and Part D premiums. Keep in mind that these amounts are based on your filing status and yearly income in 2023. If your income is significantly lower than it was in 2023 due to a life-changing event (divorce, death of spouse, work reduction, etc.) use Form SSA-44 to request a reduction in your income-related monthly premium.
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross income: | Income-related monthly adjustment amount | Total monthly Medicare Part B premium amount | Medicare Part D Income-Related Monthly Adjustment Amounts |
| Less than or equal to $106,000 | Less than or equal to $212,000 | Less than or equal to $106,000
| $0.00 | $185.00 | +$0.00 |
| Greater than $106,000 and less than or equal to $133,000 | Greater than $212,000 and less than or equal to $266,000 | $74.00
| $259.00 | +$13.70 | |
| Greater than $133,000 and less than or equal to $167,000 | Greater than $266,000 and less than or equal to $334,000 | $185.00
| $370.00 | +$35.30 | |
| Greater than $167,000 and less than or equal to $200,000 | Greater than $334,000 and less than or equal to $400,000 | $295.90
| $480.90 | +$57.00 | |
| Greater than $200,000 and less than $500,000 | Greater than $400,000 and less than $750,000 | Greater than $106,000 and less than $394,000 | $406.90
| $591.90 | +$78.60 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | Greater than or equal to $394,000 | $443.90
| $628.90 | +$85.80 |
Beware The Tax Torpedo
The $1 difference for individuals earning between $106,000 and $106,001 means an additional $1052.40 Medicare tax for Part B and Part D. Likewise, couples earning $1 over $212,000 are subject to an increase of $2,104.80 in annual premiums. For more on this topic be sure to read, "How To Avoid Paying Higher Medicare Premiums The First Two Years After Retiring."
What If You Don't Choose Medicare Part D
Medicare Part B premiums are a standard deduction from Social Security checks to cover physician office visits, outpatient hospital services, durable medical equipment, home health care, and certain preventive services. Medicare Part D for drug coverage is optional. However, if you choose not to sign up for Part D when first eligible, you may have to pay a Part D late enrollment penalty if not covered by another drug plan. Also, keep in mind that even if your retirement plan pays for your Part D plan premiums, high-income earners are required by law to pay the Part D IRMAA. If you don't pay the Part D IRMAA, you may also lose your retirement coverage, and you may not be able to re-enroll.
Eligible Medicare participants can compare 2025 coverage options for Original Medicare, Medicare Advantage, and Part D prescription drug plans during Medicare Open Enrollment for 2025, which began on October 15, 2024, and ends on December 7, 2024.
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Source: cms.gov/newsroom/fact-sheets/2025-medicare-parts-b-premiums-and-deductibles
