The Centers for Medicare and Medicaid Services (CMS) has issued the 2025 cost of living adjustments to certain parts of Medicare. As a reminder, Medicare is comprised of Part A – Hospitalization, Part B – Medical Services, Part C – Managed Care, and Part D – Prescription Drug. Following are certain COLAs for 2025:
| Medicare Part B Premium and Deductible | 2025 | 2024 |
| Standard Monthly Premium for Medicare Part B | $185.00 | $174.70 |
| Annual Deductible for All Medicare Part B Beneficiaries | $257.00 | $240.00 |
Medicare Part B Income-Related Monthly Adjustment Amounts
| Beneficiaries who are married and lived with their spouse 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 Premium Amount: |
| Less than or equal to $106,000 | $0.00 | $185.00 |
| Greater than $106,000 and less than or equal to $394,000 | $406.90 | $591.90 |
| Greater than or equal to $394,000 | $443.90 | $628.90 |
The 2025 Premiums for high-income Beneficiaries with Part B coverage that are married and file a separate return and total premiums for high-income beneficiaries with immunosuppressive drug only Part B coverage can be found here.
Medicare Part A
Medicare Part A covers inpatient hospital, skilled nursing facilities, hospice, inpatient rehab, and some home health care services. Roughly 99% of Medicare beneficiaries do not have a Part A premium because they have at least 40 quarters of Medicare-covered employment.
| Medicare Part A Deductibles and Coinsurance Amounts by Type of Cost Sharing | 2025 | 2024 |
| Inpatient Hospital Deductible (covers the first 60 days of Medicare-covered inpatient care in a benefit period) | $1,676 | $1,632 |
| Daily Coinsurance for 61st -90th day | $419 | $408 |
| Daily Coinsurance for Lifetime Reserve Days | $838 | $816 |
| Skilled Nursing Facility Coinsurance | $209.50 | $204 |
Enrollees that are 65 and over who have fewer than 40 quarters of coverage and certain individuals with disabilities pay a monthly premium to voluntarily enroll in Medicare Part A. Those with at least 30 quarters of coverage or that were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced premium. That rate will be $285, a $7 increase from 2024. Certain uninsured individuals with at least 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, that amount will be $518 a month in 2025, a $13 increase from 2024.
Medicare Part D Income-Related Monthly Adjustment Amounts
Higher income beneficiaries Part D monthly premiums are based on income. The 2025 Part D income-related monthly adjustment amounts are as follows:
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified gross income: | Income-related Monthly Adjustment Amount |
| Less than or equal to $106,000 | Less than or equal to $212,000 | $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 | $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 | $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 | $57.00 |
| Greater than $200,000 and less than or equal to $500,000 | Greater than $400,000 and less than or equal to $750,000 | $78.60 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $85.80 |
Income related adjustments for high-income beneficiaries that are married and lived with their spouses at any time during the taxable year can be found here.
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