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Medicare Part B premium: how could it increase in 2025?
Projections are showing higher Medicare Part B premiums for 2025. By how much could they increase?
Medicare is the primary program offering health insurance to seniors in the US. Each month, those eligible pay a premium for Part B of the program which covers visits to the doctor, medical tests, and other services that take place outside the hospital. In 2024, the premium for Part B rose to $174.70. Most Medicare members don’t pay a premium for Part A which covers hospital and hospice care. However, the deducible in 2024 sits at $1,632, meaning members must pay that amount before their coverage kicks in. The deducible for Part B this year is $260.
The official updates to premiums and deductibles will be published by the Centers for Medicare and Medicaid Services (CMS) around the same time open enrollment begins which this year falls on October 15. Nevertheless, a few models and forecasts are available, providing us with some insights into the prices members should expect to pay for their healthcare coverage next year.
Additionally, next year, those who purchase a Part D plan which helps to reduce the amount spent on prescription drugs, will benefit from decreased prices on the ten most common drugs used by seniors. Through the American Rescue Plan, the federal government was able to negotiate with pharmaceutical companies for the first time in history, allowing the government to offer lower prices to those with a Part D plan. Though you may not have a Part D plan, you can evaluate whether it may be worth it, if one your drugs is on the list that has been negotiated.
Medicare Part B premiums: how much will it be in 2023
The 2024 Medicare Trustees Report published in September, estimates premiums will rise to $185.00 or an increase of 5 percent. This figure is double that which Social Security beneficiaries are likely to receive as their Cost-of-Living Adjustment next year. As those who receive Social Security and Medicare know, the Part B premium is automatically deducted from a recipients check each month.
In August, the average Social Security check for a retired worker was $1,920. If current projections are correct and the COLA for 2025 is 2.5 percent, the average check could increase by $45.50 to $1,965. Accounting for the $185 Part B premium, brings the value of the check down to $1,780.