America’s seniors will pay more for Medicare as the Centers for Medicare & Medicaid Services (CMS) announces that Part B premiums will rise by about 6% in 2025, leading to higher costs for seniors enrolled in the program.
Part B covers a range of services, including doctor visits, outpatient care, preventive services like vaccinations, and medical equipment.
CMS announced this increase on Friday, 8th October, 2024.
Starting in January, the standard monthly premium for Part B will increase from $174.70 in 2024 to $185.00, adding an extra $10.30 to seniors’ monthly expenses.
Additionally, the annual deductible for Part B will rise from $240 to $257.
CMS attributes these increases to “projected price changes and assumed utilization increases that are consistent with historical experience.
The agency explains that these adjustments are necessary to keep pace with rising medical costs and demand.
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By comparison, the 2023 premium saw a rare reduction, dropping by over $5 from the previous year, which CMS cited as an unusual but temporary decrease.
For beneficiaries already receiving Social Security, the new Part B premium will be automatically deducted from their benefits starting in January.
Those not yet drawing Social Security benefits but enrolled in Medicare Part B will need to ensure they pay the updated premium on their own.
While Medicare Part B premiums are increasing, Part A, which covers hospital stays and other inpatient services, remains premium-free for nearly all beneficiaries due to payroll taxes paid over their working years.
Only about 1% of enrollees pay a Part A premium.
