Medicare premiums vary according to income level. Many people qualify for premium-free Part A but must pay a Part B premium. Others may have to pay a premium for Part A.
Each year, the federal government increases certain Medicare costs, such as copays, deductibles, and premiums. In addition to adjusting these costs, the Social Security Administration also increases your benefits with a cost-of-living adjustment (COLA).
In 2025, Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5%. That means Social Security retirement benefits will increase by approximately $50 per month starting in January 2025.
Keep reading to learn what you can expect to spend in 2025 on Medicare parts A, B, C, D, and Medigap.
Medicare Part A (hospital insurance) is the part of Original Medicare that covers:
- services you receive during an inpatient hospital stay
- skilled nursing facility care
- hospice care
It’s premium-free for most Medicare recipients. You will not incur a monthly premium if you or your spouse has paid enough payroll tax to qualify for free Medicare Part A. Usually, this correlates to around 10 years of work.
If you do not meet the requirements for free Part A, you can expect to pay either $285 or $518 per month in 2025, depending on the number of Medicare work credits you or your spouse has earned.
Medicare Part B (medical insurance) is the part of Original Medicare that covers outpatient care, including:
- doctors’ office visits
- preventive treatments, such as the flu vaccine
- laboratory services
- emergency room visits and services, as these occur before you are admitted to a hospital
Part B pays for 80% of the Medicare-approved cost for these services.
Part B has a standard monthly premium that most beneficiaries are responsible for. In 2025, this monthly cost is $185.
You will pay more than the standard monthly premium if your income from your tax return 2 years before exceeds $105,000 or your combined income with your spouse exceeds $210,000. This is known as an income-related monthly adjustment amount (IRMAA).
Depending on your income bracket, your Part B adjusted IRMAA amount may be between $74.00 and $443.90 a month.
If you have a limited income, you may be able to receive Medicare Part B while paying a lower premium. Read about Medicare savings programs and find out whether you may qualify.
Medicare Part C is also known as Medicare Advantage.
People who are eligible for Original Medicare can purchase Part C plans from private insurance companies. These plans must cover at least what Original Medicare does but may offer additional coverage. Coverage with Part C plans can vary by plan and insurer. They may include:
- prescription drug coverage
- dental coverage
- vision care and glasses
- hearing aids
Part C costs and premiums vary significantly from plan to plan. Some plans offer a $0 monthly premium, while others provide more services but may cost hundreds of dollars monthly.
These plans also typically require you to visit in-network healthcare providers to receive coverage. If you visit an out-of-network provider, you may have to pay out-of-pocket costs.
It’s important to shop around for Part C, making sure to look at the plans and providers available in your ZIP code. You can check out Medicare Advantage plans and their costs at Medicare.gov.
You must pay the Part B premium monthly, even if you buy a Part C plan.
Here’s a sample of 2025 premium costs for Medicare Part C in several U.S. cities:
| Plan name | Coverage area | Monthly premium |
|---|---|---|
| Kaiser Permanente Senior Advantage LA, Orange Co. (HMO) | Los Angeles, CA | $0 |
| Aetna Medicare Core (PPO) | Los Angeles, CA | $0 |
| HumanaChoice H5970-028 (PPO) | Brooklyn, NY | $0 |
| Aetna Medicare Value Select (HMO) | Brooklyn, NY | $0 |
| Aetna Medicare Eagle (PPO) | Chicago, IL | $0 |
| Cigna Preferred Medicare (HMO) | Chicago, IL | $0 |
Medicare Part D is an optional part of Medicare that provides coverage for up to 75% of the cost of prescription drugs.
If you decide to enroll in Original Medicare (parts A and B), you should strongly consider also signing up for Part D. Part D coverage is not available to those enrolled in Part C plans.
Part D premiums vary by plan. You can expect to pay higher premiums if you made more than $105,000 or your combined income with your spouse exceeded $210,000, as listed on your 2023 tax return.
You can explore Medicare Part D plans using this search tool on the Medicare website.
Medigap is also known as Medicare supplemental insurance. It’s sold by private insurers. Medigap helps cover some out-of-pocket costs with Original Medicare, such as premiums, copays, and coinsurance.
As of January 1, 2020, Medigap plans no longer cover the cost of the Part B monthly deductible for new beneficiaries. This rule does not affect your current coverage if you already have a Medigap plan.
You cannot purchase both Medigap and Medicare Advantage. You must choose one or the other.
The monthly range of Medigap plans varies by location and type of plan. Not every plan is available everywhere.
The following table lists the range of rates for Medigap Plan C in 2025:
| City | Monthly premium range |
|---|---|
| Los Angeles, CA | $204 to $900 |
| Brooklyn, NY | $301 to $511 |
| Chicago, IL | $172 to $587 |
You can search for Medigap plans available in your area on Medicare’s website.
In addition to monthly premiums, you can expect to pay additional out-of-pocket costs.
Copays
Copays are the costs you may be required to pay at each doctor’s visit or for prescription drugs.
Deductibles
A deductible is the out-of-pocket amount you must meet before your expenses are covered. Here is a rundown of the standard Medicare deductibles in 2025:
- Part A: $1,676 per benefit period
- Part B: $257 for the year
- Part D: varies by plan but maxes out at $590 for the year
Coinsurance
Coinsurance is the portion of each medical bill you’re responsible for.
Part A coinsurance for hospital stays starts at day 61. From day 61 to 90, your coinsurance is $419 per day of each benefit period. From day 91 and up, your coinsurance is $838 per lifetime reserve day (up to 60 days throughout your lifetime). You are responsible for all costs after your lifetime reserve days have been used up.
Part B coinsurance is 20% of the Medicare-approved costs of most outpatient medical services.
Medicare premium costs typically increase a small amount each year. These costs may vary based on the plan you’re enrolled in and your income.
Other out-of-pocket costs you may incur include copays, deductibles, and coinsurance.
Avoiding late enrollment penalties can help keep your costs lower. You may also be able to lower costs by applying for Medicare assistance, such as Medicare savings programs, if you qualify.