Medicare Part B Premiums Rise Again in 2025, Outpacing Social Security Increases
Seniors enrolled in Medicare Part B will face another increase in costs next year, as the standard monthly premium rises by $10.30 to $185, up from $174.70 in 2024, according to the Centers for Medicare and Medicaid Services (CMS). The annual deductible will also jump from $240 to $257. These increases, driven by projected costs and usage, outpace both inflation, which grew 3.2% in October, and the Social Security cost-of-living adjustment (COLA) for 2025, which is set at 2.5%.
“When Part B premiums grow at a faster rate than Social Security COLAs, premium costs consume a growing portion of monthly Social Security checks,” said Mary Johnson, a 73-year-old independent policy analyst who also receives Medicare benefits.
High-Income Beneficiaries Face Even Higher Costs
For the approximately 8% of Medicare Part B recipients subject to the Income-Related Monthly Adjustment Amount (IRMAA), costs will be significantly higher. For example:
• Those earning over $106,000 but less than $394,000 will pay a total of $591.90 monthly, including IRMAA.
• Individuals earning $394,000 or more will pay $628.90 monthly.
A Persistent Trend
This latest increase continues a longstanding pattern. Medicare Part B premiums have historically risen faster than Social Security COLAs. From 2005 to 2024, premiums grew by an average of 5.5% annually, while COLAs averaged just 2.6%, according to Johnson.
One reason for this disparity is that Medicare costs aren’t factored into the consumer price index used to calculate COLA. “This creates a growing financial strain for seniors,” Johnson noted.
Although there have been occasional years with no premium increases—such as in 2009, 2014, and 2015 under President Obama and in 2018 under President Trump—double-digit spikes have occurred under every recent administration.
What’s Next?
The new premiums will be deducted automatically from Social Security checks starting in January for those already receiving benefits. Seniors who pay Medicare Part B premiums separately will need to adjust their payments to reflect the higher amount.
These rising costs underscore the financial challenges facing seniors, as healthcare expenses increasingly outpace income adjustments.
