Medicare premiums and deductibles increased in 2025 from 2024 levels, with Part B premiums rising by about 6%. To get the most from your plan, it’s important to understand your out-of-pocket costs, which will vary depending on your plan and income.
You could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).
Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Centers for Medicare and Medicaid have started releasing information for plan year 2026. In the lead-up to the release of the new premium and deductible amounts, the CMS adopts some new rules and updates existing numbers in preparation for the open enrollment period that begins in October. Check out these seven Medicare Changes Coming in 2026, including how much the annual cap on Part D prescription drug costs goes up next year.
If you are interested in reviewing estimated numbers for 2026, read Medicare Premiums 2026: Projected IRMAA Brackets and Surcharges for Parts B and D and Brace for Higher Health Costs in 2026: A Look at Projected Medicare Premiums.
The official numbers will be released sometime this fall. Last year, the numbers came out in early November, a few weeks after Medicare open enrollment began on October 15.
Here’s a rundown of what costs are now, in 2025, so you can be better prepared to pick your plan during Medicare Open Enrollment (MOE) this year.
Medicare Part A deductible
The Part A deductible for hospital admissions increases to $1,676 in 2025. That's an increase of $44, up from $1,632 in 2024. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
There’s no limit to the number of benefit periods you can have in a year. This means you may pay the deductible more than once in a year.
For patients who are hospitalized for longer than 60 days, the coinsurance amount in 2025 is $419 a day (up $11 from $408 in 2024), for the 61st through the 90th day of hospitalization. The coinsurance payment rose to $838 a day, up from $816 in 2024, starting on the 91st day of hospitalization. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period is $209.50, up $5.50 from $204 in 2024.
Medicare Part B monthly premium
In 2025, the standard monthly premium is $185, up $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries is $257 in 2025, $17 more than the 2024 deductible of $240.
Part B covers doctor visits, outpatient services, home health care, durable medical equipment and many preventive services. You usually pay 20% of the Medicare-approved amount for Part B-covered services after you meet your deductible. This amount is called your coinsurance.
High earners will pay more. The income-related monthly adjustment amount (IRMAA) is a surcharge for people with income above a certain amount that must be paid in addition to your Medicare Part B and Part D premiums. IRMAA is calculated every year. That means if your income is higher or lower year after year, your IRMAA status can change. If the SSA determines you must pay an IRMAA, you’ll receive a notice with the new premium amount and the reason for their determination.
In 2025, the Part B IRMAA surcharge amounts range from $74.00 to $443.90. Part D surcharges range from $13.70 to $85.50, depending on income.
The surcharges for high earners are based on adjusted gross income (AGI) from two years earlier. In 2025, single beneficiaries with a 2023 AGI of more than $106,000 and married couples filing jointly with a 2023 AGI of over $212,000 will pay more. These high earning beneficiaries will pay a total Part B premium of between $259.00 and $628.90 in 2025.
Out-of-pocket maximums and Medicare supplemental insurance. There’s no yearly limit on what you pay out of pocket unless you have supplemental coverage — such as Medicare supplement insurance or are enrolled in a Medicare Advantage plan. The maximum out-of-pocket limit for Medicare Advantage plans in 2025 is $9,350 for in-network services and $14,000 for in-network and out-of-network services combined.
Medigap insurance. You can buy Medigap insurance to help pay your remaining out-of-pocket costs such as your 20% coinsurance or co-payments. Medigap Plans K and L have out-of-pocket limits.
Medicare Part D prescription drug plan
The average premium for Part D, which covers drug costs, will be $46.50 monthly in 2025, down from $53.95 in 2024. Beginning in 2025, people with Part D plans won’t have to pay more than $2,000 in out-of-pocket costs.
The $2,000 cap will be indexed to the growth in per capita Part D costs, so it may rise each year after 2025. Part D enrollees will have the option of spreading out their out-of-pocket costs over the year rather than face high out-of-pocket costs in any given month.
Part D members would pay capped monthly installment payments over the course of the calendar year instead of all at once at the pharmacy. You can directly opt in to the Medicare Prescription Payment Plan through your Part D plan sponsor.
This new rule applies only to medications covered by your Part D plan and does not apply to out-of-pocket spending on Medicare Part B drugs. Part B drugs are usually vaccinations or injections that a doctor administers, and some outpatient prescription drugs.
A surcharge for high earners also applies to your Medicare drug coverage (Part D). In 2025, if your 2023 AGI is above $106,000 if you are single or $212,000 if you’re married and file jointly, you’ll pay an extra amount in addition to your plan premium. That surcharge ranges from $13.70 to $85.80. You’ll be liable for this surcharge if your Medicare Advantage Plan includes Part D drug coverage.
Medigap
Medicare doesn’t cover everything; the coverage gap is often called the “doughnut hole.” Part B pays for only 80% of doctors’ visits and other outpatient services. In addition, Medicare doesn’t cover supplemental services such as dental care, eye appointments, or hearing aids. You have two options to deal with your uncovered expenses. You can purchase Medigap insurance to complement your Original Medicare insurance or enroll in a Medicare Advantage plan.
Medicare supplemental insurance or Medigap policies are offered by private insurers and cover deductibles and copayments. These policies are categorized by letters A through N. All plans offer the same basic benefits, no matter where you live or which insurance company you buy the policy from. Every policy that goes by the same letter must offer the same basic benefits; usually, the only difference is the cost.
Due to the phasing out of the popular Medigap Plan F, Plan G is now the plan of choice for many. The glaring difference is that Plan G does not cover the Part B deductible of $257 in 2025. Plan G also covers “excess charges” that doctors who don’t accept the Medicare-approved amount as full payment can charge you, up to 15% more for services and procedures. Anyone enrolled in Medicare before 2020 can still sign up for plans F and C.
Medicare Supplement Plan K and Plan L are cheaper than other Medigap policies and have an out-of-pocket limit. These two plans have lower monthly premiums since you’ll also share the coinsurance costs for your Plan K (50%) and Plan L (25%) up to your annual maximum limit.
Read What’s the Best Medigap Plan? to find out more about the 10 different Medigap plans you can choose from.
Medicare Advantage plans
Enrolling in a Medicare Advantage plan is an alternative to a Medigap plan. This isn’t supplemental coverage. Advantage plans replace Original Medicare. Medicare Advantage Plans are sometimes called “Part C” or “MA Plans." To be clear, if you join a Medicare Advantage Plan, you’ll still have Medicare, but you’ll get most of your Part A and Part B coverage from your Medicare Advantage Plan. You are prohibited from buying a Medigap plan with an MA plan.
These plans provide medical and prescription drug coverage through private insurance companies. Depending on the plan you choose, the monthly premium, in addition to Part B, will vary. The average monthly premium is $17.00 in 2025, down $1.23 from $18.23 in 2024. Advantage policies charge lower premiums than Medigap plans but may have higher deductibles and copayments, and your choice of providers may be more limited than with Original Medicare.
There is a maximum out-of-pocket limit for Medicare Advantage plans, unlike Original Medicare. In 2025, your maximum expenses are $9,350 for in-network services and $14,000 for out-of-network services combined. This is up from $8,850 and $13,300, respectively, in 2024. However, plans may set lower limits, and these limits only apply to Parts A and B and do not include Part D costs.
Related Content
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Federal Benefits Pro: I Answer These 2 Questions a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
An Income Strategy for a Volatile Market: Guide for AdvisersAdvisers are increasingly turning to private credit such as asset-based and real estate lending for elevated yields and protection backed by tangible assets.
-
I'm a Financial Pro Focused on Federal Benefits: These Are the 2 Questions I Answer a Lot
Many federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
Smart Money Moves Savers Should Make in 2026These steps will get you on the road to achieving your 2026 savings goals.
-
I Retired at 63 to Enjoy My Free Time but My Grown Kids Want Help With Childcare. I Love My Grandkids but It's Too Much. What Should I Do?We asked therapists and relationship experts for advice.
-
5 RMD Mistakes That Could Cost You Big-Time: Even Seasoned Retirees Slip UpThe five biggest RMD mistakes retirees make show that tax-smart retirement planning should start well before you hit the age your first RMD is due.
-
I'm a Wealth Adviser: My 4 Guiding Principles Could Help You Plan for Retirement Whether You Have $10,000 or $10 MillionRegardless of your net worth, you deserve a detailed retirement plan backed by a solid understanding of your finances.
-
A Retirement Triple Play: These 3 Tax Breaks Could Lower Your 2026 BillGood news for older taxpayers: Standard deductions are higher, there's a temporary 'bonus deduction' for older folks, and income thresholds have been raised.
-
10 New Year's Resolutions for Retiring Next YearThese New Year's resolutions will help you retire in 2026 with confidence in your financial strategy.
-
How Much Would a $50,000 HELOC Cost Per Month?Thinking about tapping your home’s equity? Here’s what a $50,000 HELOC might cost you each month based on current rates.
