Standard Part B Increasing By 5.9%
As we accurately projected in our last (October) Voice, the 2025 standard premium for Medicare Part B will be going up, from $174.70 to $185. While not unexpected, any premium increase, in this case by 5.9%, is not welcome news for Medicare beneficiaries who will also see their Social Security go up by 2.5% next year.
According to the Centers for Medicare and Medicaid Services (CMS), the premium increase “is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience.” Simply put, the 2025 forecast is that healthcare costs continue to rise.
HIGHER IRMAA RATES
While most Medicare retirees will be paying the standard premium, roughly 8% with higher incomes (over $106,000 for an individual and $212,000 for a married couple) are subject to IRMAA (Income-Related Monthly Adjustment Amount). Since 2007 higher-income Medicare retirees, both from the public and private sectors, have been paying an additional amount on top of the standard premium.
As shown in the table below, the additional amount, ranging from $74.00 to $443.90, is dependent upon the modified adjusted gross income reported by a retiree on their federal return filed two years prior. For 2025, the Social Security Administration (SSA) will be focusing on a retiree’s 2023 federal income tax return to determine if they are subject to IRMAA.
