The Centers for Medicare & Medicaid Services (CMS) has issued the 2025 increases for Medicare. As in 2024, these health care costs are going up across the board.
Medicare Part B Changes for 2025
Medicare Part B covers the cost of doctor visits and other preventative care and outpatient medical services. The cost of Part B’s standard monthly premium and annual deductible will both go up beginning January 1 of next year:
- 2025 Part B base monthly premium = $185 (up from $174.40 in 2024)
- 2025 Part B annual deductible = $257 (an increase from $240 in 2024)
Keep in mind that Medicare patients who have a higher income (more than $106,000 a year, in 2025) will pay a higher Medicare Part B premium.
The 2025 Part B premium costs are once again outpacing the annual Social Security cost-of-living adjustment (COLA) figures. (The COLA is increasing just 2.5 percent from 2024 to 2025.)
Medicare Part A Changes for 2025
Meanwhile, Part A enrollees receive coverage for inpatient care in a hospital, skilled nursing facility, hospice, and some other settings for a certain number of days before they have to pay a co-pay.
The CMS announced that Medicare Part A deductibles and co-pays will also increase:
- 2025 Part A inpatient hospital deductible = $1,676 (up from $1,632 in 2024)
- 2025 Part A coinsurance for hospital stay, days 61 to 90 = $419 per day (up from $408 per day in 2024)
- 2025 Part A coinsurance for hospital stay, days 91 onward = $838 per day (an increase from $816 in 2024)
- 2025 Part A coinsurance for skilled nursing facility, days 21 to 100 = $209.50 per day (up from $204 in 2024)
Most people do not pay a premium for Part A because they (or their spouse) had paid Medicare taxes during their employment years. For those who do, the full Part A monthly premium in 2025 will be $518 (up from $505 in 2024).
Learn More About Medicare and Medicaid
As is typical of health insurance and health care, Medicare and its related plans have nuances and limitations. It is especially important to understand that Medicare is very limited in its coverage of long-term care. Long-term care is expensive and continues to increase in cost. Medicaid is a joint federal and state program which can assist those with long-term care expenses.
While Medicare provides very limited coverage, Medicaid is much more extensive. However, because of its restrictions, qualifying for Medicaid can be extremely difficult. But paying for home care, assisted living, and nursing home without it could be all but impossible. Navigating the complex rules of Medicaid on your own could be a nightmare at best and subject you to penalties at worst. Fortunately, though, our experienced professionals can guide you through the Medicaid maze. Our legal team can advise you throughout the application process, ensuring that you (and your spouse, if applicable) retain the maximum income and total assets allowed by law.
If you have questions about the 2025 increases for Medicare or how to plan for Medicaid, contact the elder law attorneys at Kurre Schneps for a consultation.
