What you pay for Medicare will vary based on what coverage and services you get, and what providers you visit. What are my coverage options?
According to CMS, the standard monthly premium for Medicare Part B in 2025 will be $185.00, reflecting a $10.30 rise from the 2024 rate of $174.70. (source)
There’s no yearly limit on what you pay out-of-pocket, unless you have supplemental coverage, like a Medicare Supplement Insurance (Medigap) policy, or you join a Medicare Advantage Plan. For more specifics regarding premiums, check out this table:
| Medicare Type | Monthly Cost |
| Part A | $0 for most. Depending on the length of time you or your spouse worked and contributed Medicare taxes, the monthly premium for Part A in 2025 will be either $285 or $518, up from $278 or $505 in 2024. |
| Part B | $185.00/month |
| Part C | Depends on your plan. |
| Part D | Depends on your plan. CMS.gov averages it at $179.45 per month. |
| Medigap | Depends on your plan. |
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How Much Are Medicare Part A Costs Increasing?
Premiums: $0 for most people (because they or a spouse paid Medicare taxes long enough while working – generally at least 10 years). If you get Medicare earlier than age 65, you won’t pay a Part A premium. This is sometimes called “premium-free Part A.”
Deductibles: $1,676 for each inpatient hospital benefit period, before Original Medicare starts to pay. There’s no limit to the number of benefit periods you can have in a year. This means you may pay the deductible more than once in a year.
Home healthcare: $0 for covered home health care services. 20% of the Medicare-approved amount for durable medical equipment (like wheelchairs, walkers, hospital beds, and other equipment).
Hospice care: $0 for covered hospice care services. You may also pay a copayment of up to $5 for each prescription drug and other similar products for pain relief and symptom control while you’re at home, and/or 5% of the Medicare-approved amount for inpatient respite care.
Skilled nursing facility stay:
- Days 1-20: $0 copayment.
- Days 21-100: $209.50 copayment each day.
- Days 101 and beyond: You pay all costs.
Inpatient stay:
- Days 1-60: $0 after you pay your Part A deductible
- Days 61-90: $419 each day
- Days 91-150: $838 each day while using your 60 lifetime reserve days
- After day 150: You pay all costs
(source)
Part A Late Enrollment Penalty 2024
If you do have to pay premiums for Part A, the late enrollment penalty is 10 percent of either the premium, added to that monthly premium. You will pay Part A penalties for twice the number of years that you could have paid premiums for Part A but didn’t. For example, if you delayed enrollment for three years, you would pay penalties for six years.
How Much Are Medicare Part B Costs Increasing?
Premiums: $185.00 each month (or higher depending on your income). The amount can change each year. You’ll pay the premium each month, even if you don’t get any Part B-covered services.
You might pay a monthly penalty if you don’t sign up for Part B when you’re first eligible for Medicare (usually when you turn 65). You’ll pay the penalty for as long as you have Part B. The penalty goes up the longer you wait to sign up.
Deductibles: The deductible for Medicare Part B beneficiaries is $257 in 2025.
General costs for services (coinsurance): Usually 20% of the cost for each Medicare-covered service or item after you’ve paid your deductible (and as long as your doctor or health care provider accepts the Medicare-approved amount as full payment – called “accepting assignment”).
Clinical laboratory services: $0 for covered clinical laboratory services.
Home health care: $0 for covered home health care services. 20% of the Medicare-approved amount for durable medical equipment (like wheelchairs, walkers, hospital beds, and other equipment.)
Inpatient hospital care: 20% of the Medicare-approved amount for most doctor services while you’re a hospital inpatient.
Outpatient mental health care:
- $0 for your yearly depression screening.
- 20% of the Medicare-approved amount for visits to your doctor or other health care provider to diagnose or treat your condition.
- If you get your services in a hospital outpatient clinic or hospital outpatient department, you may have to pay an additional amount to the hospital.
Partial hospitalization mental health care:
- 20% of the Medicare-approved amount for each service you get from a doctor or certain other qualified mental health professional.
- Coinsurance for each day of partial hospitalization services you get in a hospital outpatient setting or community mental health center.
Outpatient hospital care:
- Usually 20% of the Medicare-approved amount for doctor and other health care providers’ services.
- You’ll also pay a copayment to the hospital for each service you get in a hospital outpatient setting (except for certain preventive services). In most cases, your copayment won’t be more than the Part A hospital stay deductible amount.
This additional hospital copayment means you may pay more for an outpatient service you get in a hospital than you’d pay if you got the same service in a doctor’s office.
Part B Late Enrollment Penalty 2024
According to KFF, the penalty equals 10% of the standard monthly premium for each 12-month period that you delayed enrollment.
How Much are Medicare Part C (Medicare Advantage) Costs Increasing?
Premiums & other costs (like deductibles, copayments, & coinsurance): Varies by plan. These amounts can change each year. You must have Part B and keep paying your Part B premium to stay in your plan.
Out-of-pocket limit: Varies by plan. Once you pay the plan’s limit, the plan pays 100% of your covered health services for the rest of the calendar year.
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How Much Are Medicare Part D Costs Increasing?
Premiums: Premiums for Medicare Part D vary by plan. You may have to pay more, depending on your income.
Deductibles, copayments, and coinsurance: Varies by plan and pharmacy. Find Medicare drug plans in your area, and compare their costs and coverage.
Out-of-pocket limit: Varies by plan. Once you pay the plan’s limit, the plan pays 100% of your covered health services for the rest of the calendar year.
Part D Late Enrollment Penalty 2024
To avoid the penalty, enroll in Medicare Part D or have other creditable coverage. If not, you’ll be charged 1% of the “national base beneficiary premium” ($36.78 in 2025) multiplied by the number of months you were uncovered. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium.
Are Medicare Premiums Tax Deductible?
The IRS allows American citizens to deduct personal expenses from their taxable income each year. However, they are particular about what can be deducted and who can claim these deductions. Therefore, Medicare premiums are usually not tax deductible, especially if you are self-employed.
If you are considering applying for Medicare, talk to an expert today. A licensed insurance agent can explain the enrollment process and help to ensure you get the most out of Medicare. Call our team today!
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