Understanding Medicare costs is crucial for your retirement planning. From premiums and deductibles to out-of-pocket maximums, we break down every cost you need to know for 2025.
Standard monthly cost
Per benefit period
Annual limit - NEW!
Out-of-pocket limit
Based on 2025 rates
*Varies by location and plan choice
Get the complete picture of what Medicare will cost you in 2025. Each part has different premiums, deductibles, and cost-sharing requirements.
Hospital Insurance
for most people
If you or your spouse paid Medicare taxes for 10+ years
If you paid Medicare taxes for less than 10 years
Medical Insurance
per month
For individuals with income ≤ $103,000
Plus your Part B premium ($185)
Maximum you'll pay for covered services in 2025
Prescription Drugs
2025 changes
Annual out-of-pocket maximum now capped at $2,000 - a huge savings for those with high drug costs!
Varies by plan and location
Many plans have $0 deductible
| Medicare Part | Monthly Premium | Annual Deductible | Your Share | Max OOP |
|---|---|---|---|---|
|
A
Part A (Hospital)
|
$0* | $1,676 | Various copays | None |
|
B
Part B (Medical)
|
$185 | $257 | 20% coinsurance | None |
|
Part C (Advantage)
|
$0-$200+ | Varies | Copays/Coinsurance | $9,350 |
|
D
Part D (Drugs)
|
$0-$80+ | Up to $590 | Copays/Coinsurance | $2,000 |
*Most people pay $0 for Part A if they or their spouse paid Medicare taxes for 10+ years
Medigap (Medicare Supplement) plans help cover the gaps in Original Medicare. Here are typical 2025 premium ranges by plan type.
per month (existing only)
per month (varies by location)
Costs vary significantly by state and ZIP code
Premiums may increase with age depending on pricing method
Some states allow gender-based pricing differences
Tobacco users may pay higher premiums
If your income is above certain thresholds, you'll pay additional premiums for Medicare Parts B and D. Here are the 2025 IRMAA brackets.
Additional monthly premium based on income
| Income Range (Individual) | Total Premium |
|---|---|
| ≤ $103,000 | $185.00 |
| $103,001 – $129,000 | $259.10 |
| $129,001 – $161,000 | $370.90 |
| $161,001 – $193,000 | $482.60 |
| $193,001+ | $628.90 |
Additional premium added to your Part D plan
| Income Range (Individual) | Additional Premium |
|---|---|
| ≤ $103,000 | $0.00 |
| $103,001 – $129,000 | +$12.90 |
| $129,001 – $161,000 | +$33.30 |
| $161,001 – $193,000 | +$53.80 |
| $193,001+ | +$74.20 |
Smart strategies can save you thousands of dollars annually on your Medicare costs. Here are proven ways to reduce your healthcare expenses.
Review and switch plans annually during Open Enrollment (Oct 15 - Dec 7) to find better deals and coverage.
Work with your doctor to use generic medications when possible. With the new $2,000 Part D cap, this strategy is even more valuable.
If your income is limited, you may qualify for Extra Help (Low Income Subsidy) to reduce prescription drug costs.
Take advantage of free preventive services covered by Medicare to catch health issues early and avoid costly treatments.
Don't stick with the same plan year after year. Plans change, and so do your healthcare needs. Compare options annually.
Enroll in Medicare on time to avoid lifetime penalties that can add 10% or more to your premiums permanently.