Americans on Medicare can expect their premiums to rise by more than $10 per month starting in 2025.
The announcement comes from the Centers for Medicare & Medicaid Services, which said it will increase the deductible by $17 due to higher projected costs and projected utilization growth.
According to CMS, anyone making more than $106,000 can expect their premiums to rise even more, but that depends on how much they earn.
News of this increase comes about a month after the Social Security Administration announced a 2.5% cost-of-living adjustment — which increases monthly Social Security benefits by $50.
Since most Part B beneficiaries have their premiums deducted directly from their paychecks, this $10.30 increase will come out of that before hitting bank accounts.
“There are provisions that if a person’s Social Security check increases less than the increase in their Part B premium, for some people, that could mean they have to pay a smaller increase in Part B premiums,” Jacobson said. “It’s expected to affect relatively few people this year, according to the Department of Social Security.” An analysis by Mary Johnson of the Senior Citizens League shows that Medicare Part B premiums have increased at a greater rate than both the Social Security cost-of-living adjustment and inflation since 2005. According to her research, premiums have risen by an average of 5.5% each year, while COLAs for Social Security beneficiaries have increased by an average of 2.6%. Inflation has averaged 3.4% per year during that time.
