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Medicare premiums will rise yet again in 2025. Here's what you need to know

Anyone earning more than $106,000 can expect to see their premiums rise even more.
Medicare Health Insurance
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Americans on Medicare can expect their premiums to go up by just over $10 per month starting in 2025.

The announcement came from the Centers for Medicare and Medicaid Services, which said it will be raising deductibles by $17 as well due to higher projected costs and assumed usage increases.

According to CMS, anyone earning more than $106,000 can expect to see their premiums rise even more, but by how much depends on how much they make.

It’s really important to note that this is already a struggle for some on Medicare,” said Gretchen Jacobson, with the Commonwealth Fund. “About one in five people on Medicare have said that they skipped needed care because of the cost of that care.”

According to CMS, these increases are just for Medicare Part B beneficiaries that receive help with outpatient care and medical equipment. The $10.10 increase nearly mirrors the $10 hike Part B beneficiaries saw between 2023 and 2024.

The news of this hike comes about a month after the Social Security Administration announced a 2.5% cost of living adjustment — which bumps up the monthly social security benefit by $50.

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Since most Part B beneficiaries have their premiums deducted directly from their payments, this $10.30 increase will come out of that before it hits bank accounts.

“There are provisions that if someone's Social Security Check increases less than the increase in their Part B premium for some people that may mean that they pay a smaller part B premium increase,” Jacobson said. “According to the
Social Security department that’s expected to affect a relatively small share of people this year.”

An analysis from Mary Johnson of the Senior Citizens League shows since 2005, Medicare Part B premiums have increased at a higher rate than both Social Security Cost of Living Adjustments and inflation.

According to her research, premiums, on average, have risen by 5.5% each year while COLAs for social security beneficiaries have averaged 2.6%. Inflation over that time has averaged 3.4% per year.