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Medicare premiums will increase again in 2025. Here’s what you need to know

Pabio November 13, 2024

Americans with Medicare can expect their premiums to increase by just over $10 per month starting in 2025.

The announcement came from Centers for Medicare and Medicaid Services, which said it would also increase deductibles by $17 due to higher projected costs and assumed utilization increases.

According to CMS, anyone earning more than $106,000 can expect to see their premiums increase even more, but the amount depends on their salary.

“It’s really important to note that this is already a struggle for some Medicare beneficiaries,” said Gretchen Jacobson of the Commonwealth Fund. “About one in five people with Medicare reported skipping needed care because of the cost of that care. »

According to CMS, these increases only affect Medicare Part B beneficiaries who receive assistance with outpatient care and medical equipment. The $10.10 increase nearly mirrors the $10 increase Part B beneficiaries experienced between 2023 and 2024.

News of the hike comes about a month after the Social Security Administration announced a 2.5% cost-of-living adjustment, which increases the monthly Social Security benefit by $50.

Since most Part B beneficiaries have their premiums deducted directly from their payments, this $10.30 increase will result before it hits bank accounts.

“There are provisions that if a person’s Social Security check increases less than their Part B premium increase for some people, it may mean they pay a larger Part B premium increase low,” Jacobson said. “According to the
Department of Social Security, which is expected to reach a relatively small share of the population this year.

An analysis by Mary Johnson of the Senior Citizens League shows that since 2005, Medicare Part B premiums have increased at a faster rate than Social Security cost-of-living adjustments and inflation.

According to his research, premiums have increased by an average of 5.5% each year, while COLAs for Social Security recipients have averaged 2.6%. Inflation during this period averaged 3.4% per year.