What’s New in Medicare for 2025?

Every year brings changes to Medicare and its related private sector programs, and 2025 is no exception. 

This year there are significant changes across all four parts of Medicare.

This article will walk you through the different parts in order, starting with Original Medicare (Part A and Part B). We’ll also discuss some changes to Medicare Advantage plans this year that will affect thousands of beneficiaries.

Let’s dive right in:

Part A

Medicare Part A covers inpatient hospital services, skilled nursing facilities, and select home healthcare services.

Your Part A Deductible

For 2025, the deductible for inpatient hospital services will increase from $1,600 to  $1,632.

Part A Coinsurance

Part A coinsurance charges you pay for hospital stays are going up, too.

Price Transparency

Thanks to some recent changes in legislation, hospitals are now mandated to disclose the standard charges for all their items and services, including those negotiated by Medicare Advantage plans, on a public website.

This transparency empowers you to make more informed decisions about your healthcare, and will make it easier to research and compare providers.

Part A Premium and Cost Sharing

Unlike nearly everything else this year, the premiums for Medicare Part A will not increase.

Most people don’t pay Part A premiums anyway. Those with at least 40 work credits during their working lives will pay nothing for Medicare Part A.

Those who have at least 30 credits but fewer than 40 will pay $278 per month in Part A premiums in 2025, the same as this year.

Those with fewer than 30 credits will see their monthly premiums for Part A decrease by $1 per month to $505.

However, that will not be the case for other Part A costs.

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Medicare Part B: Standard Premiums and Deductibles

Medicare Part B covers a broad spectrum of services, including physician services, outpatient hospital services, certain home health services, durable medical equipment, and other medical and health services not covered by Medicare Part A.

In 2025, the standard monthly premium for Medicare Part B beneficiaries will rise to $174.70. This represents an increase of $9.80 from the 2024 premium of $164.90.

Additionally, the annual deductible for all Medicare Part B beneficiaries is set at $240 in 2025, reflecting an increase of $14 from the previous annual deductible of $226 in 2024.

The new 2025 monthly premium will be $9.80 more than the $164.90 in 2024, a 5.9% increase.

The 20% coinsurance that applies after you meet your Part B deductible has not changed.

Unless you line up other coverage, such as with a Medigap plan or Medi-Share 65+ health sharing plan, you’ll have to pay 20% of all eligible charges under Medicare Part B, unless you’ve lined up other protection, such as a Medigap or Medi-Share 65+ plan, you face potentially unlimited Part B coinsurance costs.

Part B IRMAA

Since 2007, higher-income beneficiaries have paid more for Part B benefits (in addition to the monthly premium) due to the Income-Related Monthly Adjustment Amount (IRMAA).

The Social Security Administration will use your 2022 tax returns to calculate your IRMAA premiums for 2025.

First, here are the new IRMAA thresholds:

Then the monthly adjustments for Medicare Part B premiums will range from $69.90-$419.30. This year the range was $65.90-$395.60.

There’s also an IRMAA for Part D coverage for higher-income Medicare beneficiaries, described below.

Medicare Part C: Medicare Advantage Plan Updates

Medicare Advantage (Part C) is provided by private companies in partnership with Medicare, offering Part A, Part B, and sometimes Part D (drug) benefits.

In addition, these private insurance plans often include extra benefits such as dental, vision, hearing coverage, gym memberships.

Some Medicare Advantage plans also include special programs and sets of additional benefits for people with special needs. Others provide more focused care for people with some chronic illnesses or disabilities.

For 2025, CMS anticipates that premiums for Medicare Advantage will remain relatively stable compared to 2024. The average monthly premium for Medicare Advantage plans should be $18.50 in 2025, compared to $17.86 in 2024.

Remarkably, around 73% of beneficiaries will not experience any premium increases.

Many people enrolled in Medicare Advantage have a monthly premium of zero. So if you do have a premium, it may be much higher than the average listed here, since all the zero-premium plan beneficiaries will skew averages downward.

Changes to Medicare Plan Benefits

Thanks to the Inflation Reduction Act, many Medicare Advantage plans will offer many common insulin products at a monthly copayment of $35 or less in 2025.

Other changes to 2025 Medicare Advantage plans include expanded access to behavioral health services and limitations on prior authorization requirements.

A newfound focus on health equity will require Medicare Advantage organizations to provide culturally competent services and inform recipients about multilingual care providers.

Medicare Part D: Prescription Drug Coverage

Prescription drug coverage may be offered through Medicare Advantage plans or as standalone Part D Prescription Drug plans.

Although Part D premiums have risen in previous years, CMS expects premiums to decrease in 2025. In fact, CMS estimates the monthly Part D premium to decrease from $56.49 in 2024 to $55.50 in 2025.

These cost reductions result from various policy changes established under the Inflation Reduction Act of 2022. Notably, in 2024, these changes included a $35 cost-sharing limit for a month’s supply of each covered insulin product and recommended adult vaccines at no cost.

New cost-sharing limits come into play in 2025. Once your out-of-pocket spending reaches $8,000, you will no longer have Part D drug copayments or coinsurance for the rest of the calendar year.

Extra Help Expansion

Moreover, in 2025, more individuals will qualify for the Extra Help expansion.

Eligible Medicare recipients can avoid a deductible and premium, benefiting from fixed lower copayments. Enrollees can save an average of nearly $300 per year.

Part D IRMAA

Medicare Part D prescription drug coverage can come through either a stand-alone drug plan or a Medicare Advantage plan that includes prescription drug coverage.

Some higher-income beneficiaries will also pay more in premiums.

The Part D IRMAA in 2025 will range from $12.90 to $81 a month, depending on your income.

Part D Deductible

Those who have Medicare prescription drug coverage can face a deductible that will be $545 in 2025, up from $505 in 2024.

Part D Donut Hole: Changes in 2025–2026

In 2025, this coverage gap “Donut Hole” begins once you and your drug plan collectively spend $5,030 on covered drugs. That threshold represents an increase from $4,660 in 2024.

After reaching this threshold, you are responsible for paying a portion of your drug costs out of pocket until you reach your plan’s out-of-pocket threshold.

Once you surpass this threshold ($8,000 in 2025 for covered drugs), you enter the catastrophic coverage phase, where cost-sharing for covered drugs is eliminated.

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Medigap Changes

For those enrolled in high-deductible Medigap plans, your deductible is increasing to $2,800 for 2025. This applies to the high-deductible versions of Plan G, Plan F, and Plan J.

Hope that helps!

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For Further Reading: Whether You’re New to Medicare or Not, Know Your Medicare Options | The Less Expensive Medicare Supplement Alternative: Medi-Share 65+ | What To Do if Medicare Denies Your Prescription Drug | Medicare for Disabled Under 65 Years Old