The federal agency announced Friday that seniors will face changes in premiums, deductibles and coinsurance for Medicare Parts A and B.

How do Medicare Parts A and B differ?

Medicare Part B covers doctor visits; outpatient care; preventive services like exams, lab tests and vaccines; durable medical equipment; and home health care.

Health plan tiers differ based on income, employment status and Social Security Administration guidelines.

Medicare Part A primarily covers hospital services, including inpatient care, skilled nursing facilities, hospice, inpatient rehabilitation and some home health care services. Most beneficiaries do not pay a monthly Part A premium, as it is typically covered through taxes paid by them or a spouse during employment, according to CMS and the U.S. Department of Health and Human Services.

What is the Medicare Part B premium for 2025?

The standard monthly premium for Medicare Part B enrollees will be $185 in 2025, which is an increase of $10.30 from $174.70 in 2024, per CMS.

Meanwhile, the annual deductible for all Medicare Part B beneficiaries will increase by $17, from $240 to $257.

Seniors will face this Part B premium hike due to “projected price changes and assumed utilization increases that are consistent with historical experience,” according to CMS.

The premium cost fluctuates each year, with 2023 set at around $164.90, compared to $170.10 in 2022, according to CMS and the U.S. Railroad Retirement Board.

High-income enrollees will pay higher premiums in 2025

The increased premiums are based on income thresholds set by the Social Security Administration, with higher earners required to pay more for their coverage.

Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses with modified adjusted gross income of $106,000 or less, will pay the Medicare Part B premium of $185.00 a month.

Those with an income greater than $106,000 and less than $394,000 will pay an Income-Related Monthly Adjustment Amount of $406.90 and the standard premium of $185, amounting to $591.90.

Top earners with an income equal to or exceeding $394,000 will pay a total of $628.90 in premiums for Medicare Part B. This includes the standard premium of $185 and an additional $443.90 in IRMAA.

Will the COLA affect Social Security benefits?

Blavity reported that SSI recipients and other beneficiaries will receive a 2.5% increase starting in January 2025.

According to United Healthcare, Part B premiums will be deducted from Social Security, Railroad Retirement Board or Civil Service benefit earnings.