How Much Will Medicare Cost In 2025?

Braden Medicare Insurance
Aug 23, 2024
12 min read

Updated: Jan 5

Michael T. Braden, August 27, 2024 BRADEN MEDICARE INSURANCE

Braden Medicare Insurance Poster About How Much Will Medicare Cost in 2024. — Photo of a 64-year-old female sitting on her couch and researching the cost of Medicare using her smartphone.

MEDICARE COSTS AT A GLANCE

How much Medicare will cost in 2025 is an excellent question, but there are too many variables to predict the cost for each Medicare beneficiary. That is because healthcare is personal; what works best for John may not be what Mary needs. That is why there is a dizzying abundance of options and combinations.

Listed below are the basic healthcare costs for people with Medicare. Suppose you want to see and compare costs for specific health care plans. For exact cost information (like whether you've met your deductible, how much you'll pay for an item or service you got, or the status of a claim), visit www.medicare.gov.

PART A PREMIUM

Most people don't pay a monthly premium for Part A (sometimes called "premium-free Part A). If you buy Part A, you'll pay up to $525 each month in 2024. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $475. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $264. Part A hospital inpatient deductible and coinsurance you pay:

$1,676 deductible for each benefit period. A Part A Benefit Period consists of 90 days. If you have Original Medicare or a Medicare Advantage plan, you can expect to incur this cost. However, this deductible is covered by most Medicare Supplement plans.
Days 1-60: $0 coinsurance for each benefit period
Days 61-90: $419 coinsurance per day of each benefit period
Days 91-150 and $838.00 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
Beyond 151 days, you pay 100% for 365 Days.

THE MEDICARE LATE ENROLLMENT PENALTY:

If you don't purchase it when you're first eligible, your monthly premium may increase by 10%. (You'll have to pay the higher premium twice the number of years you could have had Part A, but didn't sign up.)

PART A COST IF YOU HAVE ORIGINAL MEDICARE

Note: All Medicare Advantage Plans must cover these services. If you're in a Medicare Advantage Plan, costs vary by plan and may be either higher or lower than those in Original Medicare. Review the "Evidence of Coverage" from your plan.

HOME HEALTH CARE

$0 for home health care services.
20% of the Medicare-approved amount for Durable Medical Equipment (DME).

HOSPICE CARE

$0 for hospice care.
You may be required to pay a co-payment of no more than $5 for each prescription drug and similar products for pain relief and symptom control while at home. In the rare case your drug isn’t covered by the hospice benefit, your hospice provider should contact your Medicare drug plan to see if it's covered under your Part D (Medicare Prescription Drug Coverage).
You may need to pay 5% of the Medicare-approved amount for inpatient respite care.
Medicare doesn't cover room and board when you receive hospice care in your home or another facility where you live (such as a nursing home).

IN-PATIENT HOSPITAL STAY

$1,632 deductible for each benefit period. If you have Original Medicare or a Medicare Advantage plan, you can expect to pay this amount. However, this deductible is covered by most Medicare Supplement plans.
Days 1–60: $0 co-insurance for each benefit period.
Days 61–90: $419 coinsurance per day of each benefit period.
Days 91-150: $838 coinsurance per day.
From Day 151 onward, you will pay 100% of the Costs for 365 Days.

Note: You pay for private-duty nursing, a television, or a phone in your room. You pay for a private room unless it's medically necessary.

MENTAL HEALTH IN-PATIENT STAY

$1,676 deductible for each benefit period. If you have Original Medicare or a Medicare Advantage plan, you can expect to incur this cost. However, this deductible is covered by most Medicare Supplement plans.
Days 1–60: $0 co-insurance for each benefit period.
Days 61–90: $419 coinsurance per day of each benefit period.
Days 91 and beyond: $838 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime).
Beyond lifetime reserve days: all costs.
20% of the Medicare-approved amount for mental health services you get from doctors and other providers while you're a hospital inpatient.

Note: There's no limit to the number of benefit periods you can have when you get mental health care in a general hospital. You can also have multiple benefit periods when you get care in a psychiatric hospital. Remember, there's a lifetime limit of 190 days.

SKILLED NURSING FACILITY STAY

Days 1–20: $0 for each benefit period.
Days 21–100: $209.50 coinsurance per day of each benefit period.
Days 101 and beyond: all costs.

PART B PREMIUM

The standard Part B premium amount for 2025 is $185.00. The annual Part B deductible and coinsurance is $257 for 2025. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and durable medical equipment (DME).

MONTHLY PREMIUM FOR MEDICARE PART B

The standard Part B premium amount in 2024 was $174.60; the projected 2025 Part B premium is $185.00. Everyone who has enrolled in Medicare Part B must pay this monthly premium, and it is typically deducted from their monthly Social Security Benefits.

Everyone pays this monthly Medicare Part B premium whether you are participating in Original Medicare (Medicare Part A and Part B), a Medicare Advantage (Medicare Part C Plan), or if you enroll in a Medicare Supplement or Medigap Plan.

Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

MEDICARE PART B LATE ENROLLMENT PENALTY

In most cases, if you don't sign up for Part B when you're first eligible, you'll have to pay a late enrollment penalty. You'll have to pay this penalty for as long as you have Part B. Your monthly premium for Part B may increase by 10% of the standard premium for each whole 12-month period during which you could have had Part B but didn't enroll. Additionally, you may need to wait until the General Enrollment Period (from January 1 to March 31) to enroll in Part B. Coverage will begin on July 1 of that year.

COSTS FOR MEDICARE PART B

PART B ANNUAL DEDUCTIBLE

The Annual Part B Deductible in 2025 is just $254

Photo of Braden Medicare Insurance's 2025 Monthly Cost Estimate for Medicare

For the Calendar Year.
Most doctor services (including most doctor services while you're a hospital inpatient)
Outpatient Therapy
Durable Medical Equipment, aka DME.

LAB SERVICES

You pay $0 for Medicare-approved services.

HOME HEALTH SERVICES

$0 for home health care services.
20% of the Medicare-approved amount for Durable Medical Equipment (DME).

MEDICAL SERVICES

You pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and Durable Medical Equipment (DME).

OUT-PATIENT MENTAL HEALTH SERVICES

You pay nothing for your yearly depression screening if your doctor or healthcare provider accepts the assignment.
20% of the time for visits to your doctor or other healthcare provider to diagnose or treat your condition. The Part B deductible applies.
If you receive services in a hospital outpatient clinic or department, you may be required to pay an additional co-payment or coinsurance to the hospital.

PARTIAL HOSPITALIZATION FOR MENTAL HEALTH SERVICES

You pay a percentage of the Medicare-approved amount for each service you get from a doctor or certain other qualified mental health professionals if your health care professional accepts assignment. You also pay coinsurance for each day of partial hospitalization services provided in a hospital outpatient setting or community mental health center, and the Part B deductible applies.

OUT-PATIENT HOSPITAL SERVICES

You usually pay 20% of the Medicare-approved amount for the doctor or other health care provider's services. For services that can also be provided in a doctor’s office, you may pay more for outpatient services you get in a hospital than you’ll pay for the same care in a doctor’s office. However, the hospital outpatient co-payment for the service is capped at the inpatient deductible amount.
In addition to the amount you pay the doctor, you’ll also usually pay the hospital a co-payment for each service you get in a hospital outpatient setting, except for certain preventive services that don’t have a co-payment. In most cases, the co-payment cannot exceed the Part A hospital stay deductible for each service.
The Part B deductible applies, except for certain preventive services. If you get hospital outpatient services in a critical access hospital, your micropayment may be higher and may exceed the Part A hospital stay deductible.

PART C PREMIUM (MEDICARE ADVANTAGE)

Part C monthly premium varies by plan.

MEDICARE SUPPLEMENT PLAN aka MEDIGAP PLANS

MONTHLY PREMIUM

Each Plan Letter has the same coverage levels across the US, but premiums vary by plan and state.

Medicare Supplement Policies have always been considered the plans that offer the best coverage. The plans offer different levels of coverage. Although they do not include any Prescription Drug Plans, you can see any doctor anywhere in the USA as long as they accept Medicare, and about 94% of physicians accept Medicare. The most popular Medicare Supplement plans over the past 5 years have been Plan F, Plan G, and Plan N.

MEDICARE PART C or MEDICARE ADVANTAGE

MONTHLY PREMIUMS FOR MEDICARE ADVANTAGE PLANS

The Part C monthly premium varies by plan.

Deductibles, Co-payments, & Coinsurance:

The amount you pay for Part C deductibles, co-payments, and/or coinsurance varies by plan.

MEDICARE PART D (PRESCRIPTION DRUG COVERAGE)

The Part D monthly premium varies by plan (higher-income consumers may pay more). Compare costs for specific/individual Part D plans. If you are taking little or no prescription medications and are looking for a stand-alone PDP, they can be found starting at approximately $15 per month. You can change your Prescription Drug plan every year during the Fall Annual Enrollment Period (AEP), so there is no reason to purchase a more expensive plan until your needs change.

Deductibles, Co-payments, & Coinsurance: DRUG COVERAGE)

MONTHLY PREMIUM

The Part D monthly premium varies by plan (higher-income consumers may pay more). If your annual income is less than $91,000 as an Individual or less than $182,000 if married and filing jointly, you will pay only your plan premium. If, however, your income exceeds these figures, you will pay a monthly penalty in addition to your monthly Plan Premium.

You or your Agent can refer to the exact cost from the www.medicare.gov website.

PART D LATE ENROLLMENT PENALTY

You may owe a late enrollment penalty if, for any continuous period of 63 days or more after your Initial Enrollment Period is over, you go without one of these:

A Medicare Prescription Drug Plan (Part D)
A Medicare Advantage Plan (Part C) (like an HMO or PPO) or another Medicare health plan that offers Medicare prescription drug coverage
Credible Prescription Drug Coverage

In general, you'll have to pay this penalty for as long as you have a Medicare drug plan. The cost of the late enrollment penalty depends on how long you went without Part D or creditable prescription drug coverage.

PART D DEDUCTIBLES, CO-PAYS & CO-INSURANCE

The amount you pay for Part D deductibles, co-payments, and/or coinsurance varies by plan.

HOW TO CALCULATE YOUR TOTAL COSTS FOR MEDICARE (HEALTHCARE)

Cost For Medicare Part A (Usually $0) + Your Medicare Part B Premium which is $174.60 for 2024 + Your Annual Part B Deductible of $240 + Cost of your monthly Medicare Advantage or Medicare Supplement Premium ($90 - $130) and your Medicare Part D Monthly Premium ($35-$45 Average Cost in Arizona) = Your Monthly Cost for Healthcare.

Individuals differ in their needs and the level of protection they believe best suits them. As a ballpark estimate, a fair monthly budget for someone new to Medicare will be around $320-$330 per month. This figure includes your Monthly and Annual Medicare Part B premiums, your Medicare Supplement Plan N or G premium, and your monthly Medicare Part D (Prescription Drug Plan) premium. This figure does not take into account any medications you may be taking.

MEDICARE PART A PREMIUM

Medicare Part A is the portion of Medicare that covers hospitalization. This is what we have all paid in Medicare and Social Security taxes over our working careers. Most people who have worked at least 10 years full-time will not be subject to this premium. If you are a stay-at-home spouse who did not earn enough to meet the 40 creditable hours requirement, you may still be entitled to Part A at no cost because of your spouse's work history. If you have any questions, you can find answers to most by setting up your Social Security Profile/Account at www.ssa.gov or by contacting your local Social Security office.

MEDICARE PART A DEDUCTIBLE

Although Medicare does not have deductibles as we have become accustomed to, there is a Part A deductible that everyone new to Medicare should be aware of. Anytime you are admitted to the Hospital and you stay overnight, there is a Medicare Part A Deductible of $1,676. This deductible is valid for 60 days. If you are admitted to the hospital again after 60 days, you will be charged another deductible. Although $1,676 is very expensive, it is slightly less than the average daily cost of a Hospital stay in the US. There is good news, however: if you choose a Medicare Supplement plan, most Medigap plans cover 100% of the Part A Deductible. If you select a Medicare Advantage Plan, you will have a low to $0 premium each month; however, Medicare Advantage Plans will not pay for the Part A Deductible.

MEDICARE PART B ANNUAL DEDUCTIBLE

The annual Part B Deductible is a charge that everyone must pay, regardless of the type of Plan they have. If you enrolled in Medicare Part B, you will have an Annual Deductible of $257 for 2025. This means that for the first $257 in covered healthcare expenses each Plan Year, you will pay out of pocket. This can include Part A, Part B, Part C, or Part D. After you have met the $257 Deductible, Medicare will begin paying its 80% share for covered Services (Medicare Part A & Medicare Part B), as will your Medicare Part D Prescription plan.

MEDICARE PART B MONTHLY PREMIUM

Medicare Part B is the part of Medicare that covers your Doctors' Bills, Office Visits, Lab Work, Diagnostics such as X-rays, MRIs, CT Scans, etc. For 2025, the Monthly Part B premium is $185.00. EVERYONE who is enrolled in Medicare must pay this amount; unfortunately, it is non-negotiable. It does not matter if you have Original Medicare (Medicare Part A and Part B), A Medicare Advantage Plan (Medicare Part C), or Original Medicare with a Medigap (Medicare Supplement) plan. Most people have this charge automatically deducted from their monthly Social Security check. If you defer receiving your Social Security Benefits for a few years, you can set this up as an automatic charge to your Checking or Savings Account, a monthly charge to a Credit Card, or you can be billed directly by Medicare each quarter.

MEDICARE PART B ADDITIONAL CHARGE

Most people will not pay any additional charges for their Monthly Medicare Part B Deductible. But if you are a high-wage earner, you may be subject to paying an additional Part B charge. This is based on your Income and salary. Social Security and Medicare have access to your IRS Tax Records. Medicare and Social Security will notify you if you are facing any of these additional charges.

MEDIGAP PLAN G MONTHLY PREMIUM

In this section, I present the charge for Medicare Supplement/Medigap Plan G, as it is the most comprehensive and has the highest monthly premium among Medicare Supplement plans. If you did not choose to have a Medicare Supplement, you should use this section for your Medicare Advantage Monthly Premium if you have one. In Arizona, a new male Medicare beneficiary will pay $130- $150 per month for Plan G, and a new female Medicare beneficiary will pay $95-$110 per month for Plan G.

MEDICARE PART D MONTHLY PREMIUM

Medicare Part D is the part of Medicare that covers prescription medications. The lowest monthly premium in Arizona is $7.50, and the highest is $105. These are just the Part D Monthly Premiums and do not include the cost of any medications. I used an average of $30 to create the worksheet. Once you have decided on a Part D Plan, you can use the exact cost figures.

THE BOTTOM LINE COSTS IF YOU CHOOSE A MEDICARE ADVANTAGE PLAN

You will likely spend $185.00 per month as long as your plan includes a Prescription Drug Plan. However, you will be responsible for all office copayments, and you will pay your 20% share of all Medicare-approved charges throughout the year. All Medicare Advantage Plans include MOOP (Maximum Out-of-Pocket) expenses. This will range from $3,000 to $8,500 annually, depending on your plan. You will have to use your plan's network of Doctors and Hospitals whenever you need treatment or services.

THE BOTTOM LINE: IF YOU CHOOSE ORIGINAL MEDICARE WITH A MEDICARE SUPPLEMENT PLAN

Most new Medicare Beneficiaries will pay around $345 per month for a Medicare Supplement Plan G to go with Original Medicare and a Medicare Part D Prescription Drug plan. Plan G is the best and most comprehensive Medigap plan available. With a Plan G Medicare Supplement, they will cover 20% of all costs you are responsible for. There are no copayments and no out-of-pocket expenses, aside from prescription medications. You can see any doctor and use any hospital in the United States. There are no MOOP expenses. Basically, your MOOP is the total cost of your monthly premiums, which will be around $1,740 per year + the $257 Medicare Part B Annual Deductible.

REMEMBER TO ITEMIZE YOUR TAXES

Once you turn 65, you can deduct 100% of your Healthcare Costs on your taxes each year. The only requirement is to use the "Long Form" and itemize your Deductions. Anything you pay for Premiums, Deductibles, Prescriptions, OTC Supplies, Doctor Visits, Hospital Costs, Physical Therapy, Occupational Therapy, and In-Home services is 100% Deductible.