Personal Finance

These 6 Medicare Costs Are Higher in 2025

Maurie Backman

Published: January 12, 2025 2:10 pm

Key Points from 24/7 Wall St.

• Changes to Medicare could leave you paying more for health coverage.
• A hospital stay might cost you more than it did in 2024.
• You’re looking at higher premiums and a larger deductible for outpatient care.
• Retiring early is possible, and may be easier than you think. Click here now to see if you’re ahead, or behind. (Sponsor)

If you’re 65 or older, then chances are, you’re enrolled in Medicare and rely on that coverage for your health-related needs. But a new year means a whole bunch of changes in the context of Medicare costs. Here are a few expenses that have increased in 2025.

1. The standard monthly Part B premium

Medicare Part B, which covers outpatient care, charges enrollees a monthly premiums. Those who are collecting Social Security pay that premium out of their monthly benefits directly. In 2025, the standard monthly Part B premium is $185, up from $174.70 in 2024. However, higher earners who are subject to income-related monthly adjustment amounts will pay more.

2. The annual Part B deductible

Many Medicare enrollees are familiar with deductibles from the days of getting employer insurance. In 2025, the Medicare Part B deductible is $257, up from $240 in 2024. That’s an annual deductible, though, not a monthly one.

3. The Part A inpatient hospital deductible

Medicare Part A enrollees commonly don’t pay a monthly premium for coverage. Instead, they pay through the roof when they’re admitted to the hospital. The inpatient deductible in 2025 is $1,676, up from $1,632. That covers your first 60 days of care.

4. The daily hospital coinsurance rate

Once your hospital stay exceeds 60 days, you’re subject to a Medicare Part A daily coinsurance rate for days 61 through 90. The daily cost there is $419 in 2025, up from $408 in 2024.

5. The daily coinsurance rate for lifetime reserve days

Once your hospital stay exceeds the 90-day mark, you have to dip into your lifetime reserve days to extend your care. But you’ll pay a hefty daily rate out of pocket — $838 in 2025, up from $816 in 2024. It’s a good idea to get Medigap (supplemental insurance) if you’re not enrolled in a Medicare Advantage plan to help pick up some of the costs associated with a hospital stay. Medigap may cover other out-of-pocket Medicare expenses as well.

6. The daily skilled nursing facility rate

Medicare Part A covers the first 20 days of a skilled nursing facility. Beyond that, you’re subject to a daily coinsurance rate of $209.50 in 2025, up from $204 in 2024. That rate stays in place for days 21 through 100 of your care.

Keep in mind that in addition to the costs above, you may be facing higher premiums for your Medicare Part D or Advantage plan in 2025. Or, you may be looking at higher prescription copays.

It’s important to have a handle on your healthcare costs, especially if you’re on a tight budget. There may be steps you can take to reduce your medical expenses, like switching medications or making changes to your drug plan once open enrollment starts back up again in the fall.