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In 2025, individuals enrolled in Medicare need to be aware of key updates that affect the cost of inpatient hospital stays.
Understanding what you'll pay during a hospital visit lasting less than 60 days is crucial for managing your healthcare expenses and avoiding unexpected financial stress.
Medicare Part A, which covers inpatient hospital care, sets out-of-pocket costs such as deductibles and coinsurance that beneficiaries must cover.
Whether you're planning ahead or anticipating a hospital visit in the coming year, it's important to know what changes are coming to Medicare's inpatient cost structure.
The 2025 figures released by the Centers for Medicare & Medicaid Services (CMS) reflect minor increases from the previous year, and they impact millions of Americans who rely on Medicare for coverage.
How the costs stack up for hospital stays under Medicare Part A
For 2025, the deductible that Medicare beneficiaries must pay at the start of each benefit period is $1,676. This amount must be paid out of pocket before Medicare coverage begins for hospital care.
Once the deductible has been paid, Medicare covers the full cost of the hospital stay for the first 60 days, which means no coinsurance is required during that time.
A "benefit period" begins on the day you are itted as an inpatient in a hospital or skilled nursing facility and ends after you've been out of the hospital for 60 days in a row. If you are itted again after that 60-day window, a new benefit period begins, and you must pay the deductible again.
Because there is no limit to the number of benefit periods you can have in a year, people with multiple hospitalizations may end up paying this deductible more than once annually.
To manage these potential expenses, many beneficiaries opt for supplemental coverage. Medigap, also known as Medicare Supplement Insurance, is a popular option that can help pay deductibles, copayments, and coinsurance costs not covered by Original Medicare. Plans vary by state and provider but can significantly reduce the financial burden of long-term hospital stays.
Another alternative is to enroll in a Medicare Advantage Plan (Part C), which combines Part A and Part B coverage and often includes extra benefits like vision, dental, or wellness programs. Some Advantage Plans also have caps on out-of-pocket spending, which Original Medicare does not.