By the GWAAR Legal Services Team
Submitted by Bethany Schneider, ADRC Elder Benefit Specialist
The Centers for Medicare & Medicaid Services (CMS) recently released the 2025 premiums, deductibles, and coinsurance amounts for Medicare Part A and Part B as well as the 2025 income-related monthly adjustment amounts for Part B, Part B-ID, and Part D.
Medicare Part A Costs
Most Medicare beneficiaries do not have a Part A premium because they paid Medicare taxes while working for long enough to qualify for premium-free Part A. This usually means they worked for at least 10 years. People who do not qualify for premium-free Part A may be able to buy it by paying a monthly premium. In 2025, the premium will either be $285 or $518 each month, depending on how long a beneficiary or beneficiary’s spouse worked and paid Medicare taxes.
Part A covers inpatient hospitalizations, skilled nursing facility care, hospice, inpatient rehabilitation, and some home health care services. The Part A inpatient hospital deductible covers the first 60 days of inpatient hospital care in a benefit period. Beneficiaries must pay a coinsurance amount for additional days of hospital care. For skilled nursing facility care, beneficiaries do not pay anything for the first 20 days, but they must pay a daily coinsurance for days 21 through 100. In 2025, these costs will be as follows:
• Inpatient hospital deductible: $1,676
• Daily hospital coinsurance for 61st-90th day: $419
• Daily hospital coinsurance for lifetime reserve days: $838
• Skilled nursing facility daily coinsurance for 21st-100th day: $209.50
Medicare Part B Costs
Part B covers physicians’ services, outpatient hospital services, some home health care services, durable medical equipment, and some other services that are not covered by Part A. In 2025, beneficiaries enrolled in Part B will pay a monthly premium of $185. In addition, they will pay an annual deductible of $257.
Individuals whose full Medicare coverage ended 36 months after a kidney transplant and who do not have other insurance that covers immunosuppressive drugs, may enroll in the Part B Immunosuppressive Drug (Part B-ID) benefit. This benefit only covers immunosuppressive drugs. It does not cover any other items or services. In 2025, beneficiaries enrolled in Part B-ID will pay a monthly premium of $110.40.
Income-Related Monthly Adjustment Amounts for Part B, Part B-ID, and Part D
Beneficiaries who are on Medicare and who have higher incomes may have to pay a higher monthly premium amount for their Part B, Part B-ID, and prescription drug coverage. These higher premiums are called “Income-Related Monthly Adjusted Amount” (IRMAA). Fewer than 5 percent of people with Medicare will pay an IRMAA, so most people are not affected.
Whether a beneficiary must pay an IRMAA depends on the beneficiary’s tax filing status and yearly income from two years ago. That means that in 2025, an IRMAA will be based on the beneficiary’s 2023 tax return, as shown in the table below.
If your yearly income in 2023 was:
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