Medicare Costs 2025

Part A costs in 2025

Part A (hospital insurance) is premium-free for most people who have paid Medicare taxes for at least 40 quarters (10 years). If you have 30–39 quarters, you pay $284/month. If you have fewer than 30 quarters, you pay $518/month. The Part A inpatient hospital deductible is $1,676 per benefit period in 2025. For hospital stays beyond 60 days, coinsurance of $419/day applies for days 61–90, and $838/day for lifetime reserve days.

Part B costs in 2025

The standard Part B premium is $185.00/month in 2025 for most beneficiaries. Higher-income beneficiaries pay more through IRMAA surcharges. The Part B annual deductible is $257 in 2025. After the deductible, Medicare pays 80% of covered services; you pay 20% with no out-of-pocket maximum under Original Medicare.

Part D costs in 2025

Part D premiums vary by plan and location, with a national average of approximately $55/month. The 2025 Part D deductible can be up to $590. The catastrophic coverage threshold has changed significantly: starting in 2025, out-of-pocket drug costs are capped at $2,000 per year — a major improvement from prior years.

Out-of-pocket maximum

Original Medicare (Parts A and B) has no out-of-pocket maximum. This is a significant financial risk — a serious illness could result in tens of thousands of dollars in 20% coinsurance. Medigap plans and Medicare Advantage plans both offer out-of-pocket protection.