The Medicare Part B premium will be $185 per month in 2025, a 5.9% increase from this year’s $174.70. Most individuals pay no premium for Part A, as long as they’ve paid into Medicare at least ten years (or are married to someone who did). But for individuals age 65+ who are new to the country (as legal residents) or otherwise don’t qualify for free Part A, they can buy into it for $285 per month if they have at least 30 quarters of coverage, or $518 if fewer than 30 quarters (up from $278 and $505, respectively, in 2024).
All of the IRMAA amounts went up as well. The IRMAA will start at a MAGI of $106,000 for individuals and $212,000 for couples. MAGI for IRMAA purposes is adjusted gross income plus tax-exempt interest. This is based on the most recent tax return the IRS has on file, generally 2023.
2025 IRMAA Table
Medicare participants should have received their premium notices in early December. As always, they can appeal the IRMAA if they have experienced a life-changing event and expect their income to be lower than the amount used to calculate the 2025 IRMAA. If they appealed last year due to retirement or other reasons, they will need to appeal again this year. Then next year the tax return used for the IRMAA should reflect their lower income going forward. If the tax return used to figure the IRMAA is not correct—say they filed an amended return—this is also grounds for appeal.
The Part B deductible will be $257, up 7% from the 2024 deductible of $240. The Part A deductible will be $1,676, up $44 from $1,632 in 2024. After the Part A deductible is paid—covered by most Medigap policies—Medicare will cover the first 60 days of hospital costs. After 60 days, the coinsurance amounts are $419 per day for days 61–90 and $838 beyond that. These Part A coinsurance amounts are also covered by Medigap. Indeed, these high Part A costs, as well as the 20% coinsurance for Part B, are the reason Medicare supplement insurance (Medigap) is recommended.
Medicare Advantage is a different animal. These plans are free to establish their own costs and benefits as long as they meet certain minimum Medicare requirements. Many Medicare Advantage plans have no deductible. Some even rebate all or part of the $185 Part B premium. Individuals with Medicare Advantage plans should refer to their evidence of coverage booklet to see what their hospital and other costs would be.
Take the time to review your situation with a Medicare expert.