Medicare Costs for 2025
Medicare Costs for 2025 were announced on November 8, 2025 by the Centers for Medicare & Medicaid Services.
Part A - Hospital Coverage
Inpatient Hospital Stay
The benefit period ends 60 days after your release from care.
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Part A Premium $0
About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration. Depending on work history, this could be as much as $505 a month.
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Part A Deductible $1,676
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Part A Coinsurance - Days 1 - 60 $0
Per day of each benefit period.
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Part A Coinsurance - Days 61 - 90 $419
Per day of each benefit period.
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Part A Coinsurance - 60 Lifetime Reserve Days $838
Per day after day 90 of each benefit period.
Skilled Nursing Facility Stay
A 3-day inpatient hospital stay is required first.
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Part A Coinsurance - Days 1 - 20 $0
Per day of each benefit period.
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Part A Coinsurance - Days 21 - 200 $209.50
Per day of each benefit period.
Part B - Medical Coverage
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Part B Premium $185
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Part B Deductible $257
2025 Medicare Part B Costs
The standard premium for Medicare Part B in 2025 is set at $185.
It’s important to note that Medicare Part B pricing is determined based on your income from two years prior. Consequently, your 2025 Medicare Part B expenses will be calculated using your 2023 income tax filings. Any premium increase above the standard amount is referred to as IRMAA, which stands for Income-Related Monthly Adjustment Amount.
IRMAA represents an additional cost that some individuals may be required to pay in addition to their regular Medicare premium if their modified adjusted gross income (MAGI) surpasses a specific threshold. To ensure clarity, our chart below illustrates the total premium owed for your 2025 Medicare Part B expenses within each income bracket.
| If your Annual Income in 2023 was | In 2025 You Pay | ||||
| Individual Tax Return | Joint Tax Return | Married & Separate Tax Return | Part B IRMAA | Total Part B Premium | Part D IRMAA |
| $106,000 or less | $212,000 or less | $106,000 or less | $0 | $185 | $0 |
| $106,001 to $133,000 | $212,001 to $266,000 | N/A | $74 | $259 | $13.70 |
| $133,001 to $167,000 | $266,001 to $334,000 | N/A | $185 | $370 | $35.30 |
| $167,001 to $200,000 | $334,001 to $400,000 | N/A | $295.50 | $480.90 | $57 |
| $200,001 to $499,999 | $400,001 to $749,999 | $103,001 to $397,000 | $406.90 | $591.90 | $78.60 |
| Above $500,000 | Above $750,000 | Above $397,000 | $443.90 | $628.90 | $85.80 |
2025 Medicare Part D Costs
| Initial Deductible | $590 |
Once the deductible is met, beneficiaries will pay a percentage of their drug costs (typically 25% coinsurance), with the plan and manufacturer sharing the remaining costs.
The annual OOP threshold is $2,000 in 2025. This includes deductibles, copayments, and coinsurance.
After reaching the $2,000 OOP limit, beneficiaries enter catastrophic coverage, where the plan covers most of the drug costs, and beneficiaries pay nothing for covered medications.
The coverage gap, or “donut hole,” will be eliminated in 2025, and the new $2,000 OOP limit will replace it.
Medicare Prescription Payment Plan (M3P)
A new program that provides Part D members with the option to pay out-of-pocket prescription drug costs by monthly payments over the course of the plan year, instead of all at once to the pharmacy.
2025 Medicare Part D – Premium Costs
Your Part D insurance company sets base Part D premiums. The average premium for 2025 is $46.50. While this may seem high. There are carriers in 2025 offering plans for $0 monthly, and most of iHealthBrokers clients pay less than $15 for their Part D plan.
The increased premium over the base amount is called IRMAA and stands for Income-Related Monthly Adjustment Amount. IRMAA is an additional amount that some people might have to pay along with their Medicare premium if their modified adjusted gross income (MAGI) is higher than a certain threshold. This can be viewed above with the Part B costs.
2025 Medicare Advantage & Medigap Pricing
The insurance companies dictate Medicare Advantage Plans and Medigap plan pricing. We go into this more in our Medicare Advantage vs. Medigap article.
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