The standard Medicare Part B monthly premium for 2025 is $185.00. This applies to most beneficiaries over 65, though higher-income individuals may pay more based on 2023 tax returns (IRMAA). The Part B annual deductible for all beneficiaries in 2025 is $257.00.
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.
As part of a larger redesign of the structure of Part D plans included in the IRA, in 2025, beneficiaries have a $0 cost-sharing obligation during the catastrophic phase of coverage, which starts when out-of-pocket costs (deductibles, copays, and cost-sharing for covered drugs) reach $2,000.
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.
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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.
For 2026 Medicare premiums, the Social Security Administration (SSA) uses your 2024 tax return information, specifically your Modified Adjusted Gross Income (MAGI), which is the income from two years prior. If 2024 data isn't available, they'll use 2023 data, with higher incomes resulting in higher Income-Related Monthly Adjustment Amounts (IRMAA) added to standard Part B and Part D premiums.
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.
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.
These amounts are set according to formulas in the Medicare law and depend on historical and projected health care costs. The standard monthly premium for Medicare Part B will be $202.90 a month for 2026, an increase of $17.90 from $185.00 in 2025.
For 2025, beneficiaries whose 2023 income exceeded $106,000 (individual return) or $212,000 (joint return) pay a higher total Medicare Part B premium amount depending on income. The 2025 IRMAA surcharge amounts for Part B will be added on top of the basic Part B premium of $185, an increase of $10.60 from 2024.
Each fall, when we ask the IRS for information to determine next year's premiums, we ask for tax information to verify your reports of changes affecting your income-related monthly adjustment amounts, if any. We also ask the IRS for your two-year-old MAGI if we've temporarily used three-year-old MAGI.
Vermont, Utah and Minnesota topped the Commonwealth Fund's Medicare performance scorecard in 2025, whereas Kentucky, Mississippi and Louisiana struggled the most.
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.
In 2025, the out-of-pocket limit for Medicare Advantage plans may not exceed $9,350 for in-network services and $14,000 for in-network and out-of-network services combined. These out-of-pocket limits apply to Part A and B services only, and do not apply to Part D spending.
Medicare beneficiaries with incomes above $106,000 for individuals and $212,000 for married couples are required to pay higher premiums. (These thresholds are updated annually based on inflation so the amount will be different next year.)
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.
For the average retired worker, the 2.8 percent COLA is expected to increase their monthly benefit by about $56. This will raise the average payment from approximately $2,008 in 2025 to about $2,064 in 2026. Social Security retirement beneficiaries will see this increase reflected in their January 2026 payments.