Medicare Part B costs are rising in 2025 and will give retirees a double whammy

One of the biggest misconceptions about Medicare is that enrollment is free for older Americans. It’s true that Medicare Part A, which covers hospital care, generally doesn’t come with a premium (although there are other out-of-pocket costs that enrollees face, such as deductibles and coinsurance). But Part B, which covers outpatient care, charges enrollees a premium just to have that coverage to begin with.

In 2025, the cost of Medicare Part B increases in several ways. And that could, unfortunately, put many retirees in a difficult financial situation.

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Prepare to pay more for health coverage

Currently, the standard Medicare Part B monthly premium is $174.70. In 2025, it rises to $185. That’s an increase of $10.30.

The annual Medicare Part B deductible also increases in 2025. Right now, it’s $250, but in the new year, it will rise to $257. That’s an increase of $17.

It’s also worth noting that some seniors will see their Medicare Part B costs rise even more in 2025 as a result of being subject to income-related monthly adjustment amounts, or IRMAAs. This adjustment affects only about 8 percent of seniors who are enrolled in Medicare Part B, but it applies to single filers with a modified adjusted gross income (MAGI) of more than $106,000 or joint filers with a MAGI of more than $212,000 that have coverage for immunosuppressive drugs only.

Why it’s a bad time to raise the cost of Medicare Part B

No one wants to pay more for healthcare, so it’s never particularly great news when the cost of Medicare Part B goes up year after year. But in 2025, seniors may especially struggle to cope with rising Part B costs, as next year’s Social Security cost-of-living adjustment (COLA) is the lowest since 2021.

In 2025, Social Security gets a 2.5% COKE. Not taking into account an increase in Medicare Part B premiums, this 2.5% increase will result in a $49 increase for the average beneficiary.

However, since Medicare Part B is increasing, the typical senior on social security their monthly benefit will now only increase by $39. And that missing money could be a big problem for seniors who are used to living paycheck to paycheck.

Ways to spend less on health coverage

If you’re worried that an increase in the cost of Medicare Part B will hurt your finances in 2025, there are a few things you can do about it. First, read the benefits you’re entitled to as a Part B enrollee and make sure you’re taking advantage of the free preventive care you may be eligible for.

Next, if you’re on Original Medicare and need a Part D drug plan to go with your coverage. from parts A and B, review your choices carefully during the fall open enrollmentwhich has been going on for several weeks. If you can find a more cost-effective Part D plan, you may be able to offset the higher costs of Part B. You have until December 7 to change your Medicare drug coverage.

If paying $10.30 more per month for Medicare Part B has the potential to cause you to fall behind on your bills, it may be time to reassess your overall finances. This could mean making the difficult choice to downsize or move to a part of the country where your benefits are limited. Social Security benefits can give you more purchasing power.

Not unusual for the cost Medicare to grow from one year to another. But that doesn’t mean you have to sit back, do nothing and wait for this growth to wreak havoc on your finances.

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