Healthcare payments will increase in 2025 with Medicare Part B and Part A premiums rising, as well as Part A’s deductible for hospital stays, the Centers for Medicare and Medicaid Services announced.
Part B price increases
The Medicare Part B plan covers doctor’s visits, home healthcare, preventive services such as vaccines, medical equipment such as wheelchairs, routine cancer screenings, and other outpatient services.
The plan’s standard monthly premium payment will jump 6% to $185, a $10.30 increase from 2024. However, if a Part B beneficiary has an annual individual income of more than $106,000, he or she will pay more for the standard premium plan.
Those making over $106,000 but below $394,000 could be paying as much as $591.90 per month, and seniors with an income over $394,000 will be paying $628.90.
Income-related monthly adjustments only affect about 8% of people who pay for Part B Medicare, according to CMS.
The annual deductible for all Medicare Part B beneficiaries will go up in 2025 as well, rising to $257 compared to 2024’s $240. In 2023, the premium fell just over $5 from 2022, equaling out to $164.90.
The CMS stated that the reason Part B’s standard monthly payment and deductible are increasing is “mainly due to projected price changes and assumed utilization increases that are consistent with historical experience.”
Part A price increases
Part A premium, which covers inpatient care, hospice care, and stays at skilled nursing facilities, will now cost $518 a month, increasing by $13 from 2024. The deductible for hospital visits will also now be $1,676 a stay, up $44 from $1,632 in 2024.
If a visit goes beyond 60 days, the coinsurance cost will be $419 per day through day 90. In 2024, it was $408.
Part D’s new out-of-pocket spending limit
Part D, which covers prescription drug coverage, is the only plan that is seeing an average monthly premium decrease. The Medicare Part D plan is estimated to drop from $41.63 a month in 2024 to $40 a month in 2025.
Yet, much like Part B’s plan, seniors with more income will pay more for their plans. The CMS says that a senior earning more than $106,000 a year but less than $133,000 will pay an extra $13.70 for his or her monthly Part D premium.
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Part D will also be seeing a $2,000 out-of-pocket cap on prescription drugs in 2025, backed by the AARP. The change is expected to assist nearly 3.2 million people next year as they fill their prescriptions.
The news from the CMS comes a month after the Social Security Administration announced a 2.5% cost-of-living adjustment in 2025, bumping up the average Social Security retirement benefit by $50 a month per household.
