Medicare Costs in 2025 – What to Expect
Understanding the costs associated with Medicare is essential for planning your healthcare budget. In 2025, several updates affect premiums, deductibles, and other out-of-pocket expenses.
Most people do not pay a premium for Medicare Part A, as long as they or their spouse paid Medicare taxes for at least 10 years. However, those who don't qualify for premium-free Part A may pay up to $518 per month. For hospital stays, there is a deductible of $1,676 per benefit period. The first 60 days of each benefit period are covered after the deductible, but costs increase for longer stays.
Medicare Part B, which covers outpatient care and doctor visits, has a standard monthly premium of $185 in 2025. The annual deductible is $257. After meeting the deductible, you typically pay 20% of the Medicare-approved amount for most services.
Medicare Advantage (Part C) plans, offered by private insurers, have varying costs. Many plans charge no additional premium beyond the Part B premium, but out-of-pocket costs, such as copays and coinsurance, can differ. These plans also set annual out-of-pocket maximums to limit your total expenses.
Prescription drug coverage under Part D also involves monthly premiums, deductibles, and copays, which vary by plan. It's important to compare plans each year during open enrollment to ensure you have the best coverage for your needs.
Medicare does not cover everything. Services like long-term care, dental, vision, and hearing are not included in Original Medicare, though some Medicare Advantage plans offer these benefits.
Being aware of Medicare's costs helps you avoid surprises and make informed choices about supplemental coverage and budgeting for healthcare expenses in retirement.