Seniors will have to pay more again for Medicare Part B next year, according to the Centers for Medicare and Medicaid Services (CMS).

The standard monthly extra charge for Medicare Part B enrollees will rise by $10.30 to $185.00 in 2025 from $174.70 this year, CMS said late Friday. The extra charge was $164.90 in 2023. The annual deductible for all Medicare Part B beneficiaries will boost to $257 from $240 in 2024.  The increases are mainly due to projected costs and usage increases, CMS said.

The jump in the 2025 Medicare Part B extra charge outpaces both expense boost and the Social safety expense-of-living adjustment (COLA). Annual expense boost rose 3.2% in October and COLA for 2025 will be 2.5%, or an average of $50 more per month.

“When Part B premiums develop at a faster rate than Social safety COLAS, extra charge costs consume a growing portion of monthly Social safety checks,” said Mary Johnson, an independent Social safety and Medicare policy analyst who at age 73, also receives those benefits.

How much more will high-profits Americans pay?

Since a beneficiary’s Part B monthly extra charge is based on profits, high-profits Americans also pay an profits-Related Monthly Adjustment Amount, or IRMAA. IRMAA affects roughly 8% of people with Medicare Part B, CMS said.

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“While mostSocial safety recipients aged 65 and older will have benefits high enough to cover the $10.30 per month boost of Part B premiums from $174.70 to $185.00, the same is not factual of individuals who pay higher premiums based on profits,” Johnson said.

CMS said beneficiaries who are married and lived with their spouses at any period during the year, but who file divide responsibility returns from their spouses with modified adjusted gross profits of:

• $106,000 or less will only pay the Medicare Part B extra charge of $185.00 per month
• More than $106,000 and less than $394,000 will pay IRMAA of $406.90 plus the standard $185.00 for a total of $591.90 monthly
• $394,000 or more will pay $443.90 in IRMAA and the standard $185.00 for a monthly total of $628.90.

Medicare Part B costs have outpaced COLA for years

2025 isn’t an outlier. Medicare Part B premiums have been rising faster than COLA for years, data display., which is part of the rationale many seniors have been struggling.

From 2005 to 2024, Part B premiums increased on average by 5.5% per year, while COLAs averaged less than half that rate at just 2.6%, Johnson’s analysis showed.

“The disparity is caused in part because Medicare costs are not included in the customer worth index that’s currently used to compute the COLA,” she said.

During that period frame, there were only four times when Part B premiums did not boost, three of which were during former President Barack Obama’s administration (2009, 2014, and 2015) and once during former President Donald Trump’s administration in 2018, she said.

Even so, there were still significant double digit extra charge spikes under every recent presidential administration — George W. Bush, Obama, Trump and Joe Biden, Johnson said.

When do seniors commence paying the recent Medicare Part B extra charge?

For those who already receive Social safety benefits, the recent 2025 Part B extra charge is usually automatically deducted from Social safety checks in January.

Those who aren’t receiving Social safety benefits yet and paying Medicare Part B each month will have to make sure they pay the recent higher amount, starting in January.

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What is Medicare Part B?

Medicare consists of different parts, and Part B covers physicians’ services, outpatient hospital services, sure home health services, durable medical equipment, and some other medical and health services not covered by Medicare Part A.

Part A covers inpatient hospital stays, talented nursing facilities, hospice, inpatient rehabilitation, and some home health worry services. About 99% of Medicare beneficiaries do not pay a Part A extra charge since they have at least 40 quarters of Medicare-covered employment, as determined by the Social safety Administration, CMS said.

The inpatient hospital deductible in Part A will rise $44 to $1,676 in 2025 from $1,632 in 2024, CMS said.

For people who haven’t worked long enough to qualify for extra charge-free Part A, the packed monthly Part A extra charge will be $518, up $13 from 2024.  

Medora Lee is a money, markets, and expense management reporter at USA TODAY. You can reach her at [email protected] and  subscribe to our free Daily Money newsletter for expense management tips and business information every Monday through Friday morning.