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In 2025, Medicare Part B s are rising-and for those with higher incomes, the increase will be even more noticeable due to income-based surcharges.
The Centers for Medicare & Medicaid Services (CMS) has released updated figures for standard s and the Income-Related Monthly Adjustment Amount (IRMAA), which affects those earning above specific thresholds.
The standard monthly Part B for 2025 is set at $185.00, up from $174.70 in 2024. This applies to most Medicare enrollees. The annual deductible for Part B will also rise, reaching $257, up from $240.
However, beneficiaries with higher modified adjusted gross incomes (MAGI) will see surcharges added to their monthly s.
How much more will higher earners pay?
If your income exceeds certain levels, you'll face a higher monthly payment due to IRMAA. This surcharge is based on your tax return from two years earlier-in this case, from 2023. Here's how the monthly Part B breaks down by income:
Individual income: $106,000 or less
- t income: $212,000 or less
- Monthly : $185.00 (standard rate)
Individual income: $106,001-$133,000
- t income: $212,001-$266,000
- Monthly : $259.00
Individual income: $133,001-$167,000
- t income: $266,001-$334,000
- Monthly : $370.00
Individual income: $167,001-$200,000
- t income: $334,001-$400,000
- Monthly : $480.90
Individual income: $200,001-$500,000
- t income: $400,001-$750,000
- Monthly : $591.90
Individual income: Over $500,000
- t income: Over $750,000
- Monthly : $628.90
For married individuals filing separately:
Income between $106,001 and $394,000
- Monthly : $406.90
Income over $394,000
- Monthly : $443.90
As CMS noted, these IRMAA surcharges affect fewer than 8% of all Medicare Part B enrollees, but for those impacted, the additional costs can be substantial.
IRMAA surcharges can significantly increase your total annual health care costs in retirement. Even just one extra dollar over the income threshold can bump you into the next bracket, which is why many retirees take steps to manage income and avoid unexpected hikes.
If your income has changed substantially due to a life event such as retirement, job loss, or the death of a spouse, you can file Form SSA-44 to request a lower IRMAA based on your current financial situation.
Additionally, 2025 introduces further updates across the Medicare system. The Part D prescription drug out-of-pocket cap will be set at $2,000, offering some financial protection for those with high medication costs. Beneficiaries will also have the option to spread those costs over the calendar year.
As Medicare costs continue to rise, understanding how income affects your s is more important than ever. Planning ahead-especially if you're nearing retirement or considering changes to your income-can help you avoid steep IRMAA charges and better manage your healthcare expenses.