Medicare costs in 2025 vary, with the standard Part B premium set at $185/month and a $257 annual deductible, though higher incomes pay more (Income-Related Monthly Adjustment Amount or IRMAA) and some pay $0 for premium-free Part A if they worked 10+ years, while Part D (drugs) and Medicare Advantage (Part C) costs depend on the chosen plan and income, with new out-of-pocket caps on Part D in 2025.
Yes, senior citizens will pay more for Medicare in 2026, primarily due to a nearly 10% jump in the standard Part B premium to $202.90/month and higher deductibles, affecting most enrollees and consuming a significant portion of the Social Security cost-of-living adjustment (COLA). While Medicare Advantage (Part C) premiums are decreasing on average, out-of-pocket costs and some supplemental benefits are rising, and Part D drug plan maximums are increasing, leading to higher overall expenses for many.
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
The Centers for Medicare & Medicaid Services (CMS) has set the standard monthly Part B premium at $202.90 in 2026, an increase of $17.90, or just under 10 percent, from the 2025 premium of $185.00.
The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
Yes, the Medicare Part D "donut hole" (coverage gap) is officially eliminated as of January 1, 2025, thanks to the Inflation Reduction Act, simplifying coverage into three phases: deductible, initial coverage, and catastrophic, with a new $2,000 out-of-pocket spending cap that eliminates the gap where higher costs used to occur.
Here are some of the biggest Medicare mistakes to avoid:
If you can't afford your Medicare premium, you likely qualify for financial help through Medicare Savings Programs (MSPs) or Extra Help, which cover premiums, deductibles, and drug costs for those with limited income and assets; start by visiting BenefitsCheckup.org or calling your State Health Insurance Assistance Program (SHIP) for personalized assistance. You can also get help from Medicaid or contact your State Medical Assistance office.
You may be exempt from paying the Medicare Levy Surcharge if you: Earn a taxable income below the MLS threshold ($101,000 for singles or $202,000 for families/couples/single parents)
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
To qualify for 0% capital gains tax, you must have long-term capital gains (assets held over a year) and your taxable income (after deductions) must fall below specific IRS thresholds, which change annually but are roughly <$48,350 for single filers and <$96,700 for married filing jointly for the 2025 tax year, allowing for higher total income when combined with deductions like the standard deduction. The key is keeping your adjusted gross income (AGI) low enough so that after subtracting deductions, your taxable income remains within these limits.
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For 2026, Medicare beneficiaries with income over $109,000 (for single tax filers and for married people who file separately) or $218,000 (for joint filers) will pay the surcharge. The total monthly surcharge for these beneficiaries will range from $95.70 to $578 (see chart below).
$0 for most people (because they paid Medicare taxes long enough while working — generally at least 10 years). This is sometimes called “premium-free Part A.” Do I qualify? If you don't qualify for a premium-free Part A, you might be able to buy it.
The Medicare "3-Day Rule" requires a beneficiary to have a qualifying 3-day inpatient hospital stay (admission day counts, discharge day doesn't) before Medicare will cover services in a Skilled Nursing Facility (SNF) for rehabilitation or skilled care, though this rule can be waived in certain Medicare Advantage plans or through specific Accountable Care Organization (ACO) initiatives. Time spent in observation or the Emergency Department doesn't count towards these 3 days, but new demonstration projects and waivers are emerging to offer more flexibility for patients needing SNF care.