Yes, Medicare premiums are increasing in 2025. The standard monthly Part B premium is rising to $185.00, a $10.30 increase from 2024. Part A premiums for those not qualifying for premium-free coverage are also increasing. Additionally, higher-income beneficiaries may face higher surcharges based on their 2023 income.
In 2025, the standard Medicare Part B premium is $185 per month, with an annual deductible of $257, though higher-income earners pay more (Income-Related Monthly Adjustment Amount or IRMAA), and some with Social Security benefits pay less due to the "hold harmless" rule.
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 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.
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.
Here are some of the biggest Medicare mistakes to avoid:
For 2026, the standard Medicare Part B premium deducted from most Social Security checks is $202.90 per month, with higher premiums for higher incomes and a separate annual deductible of $283; some beneficiaries pay less due to the hold harmless rule. Your exact amount depends on your income from two years prior, and you'll also pay 20% coinsurance for most services after meeting the deductible.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025. (Note: Some people receive both Social Security and SSI benefits.)
Yes, Medicare costs are increasing in 2025 and even more significantly for 2026, with higher monthly premiums for Part B and higher deductibles for both Part A (hospital) and Part B, while Part D (prescription drugs) introduces a major $2,000 out-of-pocket spending cap in 2025, even as its deductible rises. These increases reflect rising healthcare costs, with Part B's standard premium jumping to $202.90 in 2026, eating into the Social Security COLA for many seniors, according to Centers for Medicare & Medicaid Services and USA Today.
Medigap Premium Increases
Attained-Age plans typically experience premium increases as the policyholder gets older, while Issue-Age plans may experience premium increases due to inflation and other factors. Community-Rated plans may also experience premium increases due to inflation, but not due to age.
For 2026, the standard Medicare Part B premium is $202.90/month (up from $185 in 2025), with the annual deductible rising to $283; higher earners pay more through Income-Related Monthly Adjustment Amounts (IRMAA), and most people with Part A don't pay a premium, but the inpatient deductible increases to $1,736. Medicare Advantage plans (Part C) often have low or no extra premiums, though most still require paying the Part B premium. Costs for Part D (prescription drugs) also have income-based adjustments.
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.
For 2025, the Additional Medicare Tax remains a 0.9% surcharge on wages, self-employment income, or Railroad Retirement earnings exceeding specific thresholds: $200,000 for Single/HoH, $250,000 for Married Filing Jointly, and $125,000 for Married Filing Separately, with employers withholding it on wages over $200k regardless of filing status, and individuals responsible for reporting it if combined income surpasses their threshold, using Form 8959.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
Suze Orman famously suggests many people need $5 million to $10 million to retire comfortably, especially for early retirement, to cover longevity, inflation, and healthcare risks, calling smaller amounts like $1 million or $2 million "nothing" against catastrophes. She emphasizes having 3 to 5 years of living expenses in cash reserves, separate from investments, and stresses a high savings rate (around 15%) and delaying Social Security for maximum benefit. While her large figures target a very secure, risk-averse retirement, she also advises on saving significantly more than typical projections suggest.
There could be several reasons why Social Security stopped withholding your Medicare Part B premium. One common reason is that your income has exceeded the threshold for premium assistance. Another reason could be that there was a mistake or error in your records.