One of the biggest misconceptions about Medicare is that the cost of enrollment is free for older Americans. It’s true that Medicare Part A, which covers hospital care, generally doesn’t come with a premium (though there are other out-of-pocket costs enrollees face, like deductibles and coinsurance). But Part B, which covers outpatient care, charges enrollees a premium just to have that coverage to begin with.

In 2025, the cost of Medicare Part B is rising in several regards. And that could, unfortunately, put a lot of retirees in a tough financial spot.

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Get ready to pay more for health coverage

Currently, the standard monthly Medicare Part B premium is $174.70. In 2025, it’s rising to $185. That’s an increase of $10.30.

The annual Medicare Part B deductible is also rising in 2025. Right now, it’s $250, but in the new year, it’s going up to $257. That’s an increase of $17.

It’s also worth noting that some seniors will see their Medicare Part B costs rise even more in 2025 as a result of being subject to income-related monthly adjustment amounts, or IRMAAs. This adjustment only impacts about 8% of seniors who are enrolled in Medicare Part B, but they apply to single tax filers with a modified adjusted gross income (MAGI) above $106,000 or joint filers with a MAGI above $212,000 who have immunosuppressive drug coverage only.

Why it’s a bad time for the cost of Medicare Part B to increase

Nobody wants to pay more for healthcare, so it’s never particularly great news when the cost of Medicare Part B rises from one year to the next. But in 2025, seniors might especially struggle to cope with an increase in Part B costs because next year’s Social Security cost-of-living adjustment (COLA) is the smallest to arrive since 2021.

In 2025, Social Security is getting a 2.5% COLA. Without accounting for a rise in Medicare Part B premiums, that 2.5% raise will result in a $49 increase for the average beneficiary.

However, since Medicare Part B is going up, the typical senior on Social Security will now only see their monthly benefit rise by $39. And that missing money could be a big deal for seniors who are used to living paycheck to paycheck.

Ways to spend less on health coverage

If you’re worried that an increase in the cost of Medicare Part B is going to hurt your finances in 2025, there are a few things you can do about it. First, read through the benefits you’re entitled to as a Part B enrollee and make sure you’re taking advantage of the free preventive care you may be eligible for.

Next, if you’re on original Medicare and need a Part D drug plan to go along with your Part A and B coverage, review your choices carefully during fall open enrollment, which is still taking place for a few more weeks. If you’re able to find a more cost-effective Part D plan, you might manage to make up for your higher Part B costs. You have until Dec. 7 to switch your Medicare drug coverage.

If paying $10.30 more per month for Medicare Part B has the potential to cause you to fall behind on bills, it may be time to reassess your overall finances. That could mean making the difficult choice to downsize or relocate to a part of the country where your Social Security benefits may offer you more buying power.

It’s not unusual for the cost of Medicare to rise from one year to the next. But that doesn’t mean you have to sit back, do nothing, and wait for that increase to wreak havoc on your financial situation.

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