On November 8, the Centers for Medicare and Medicaid Services announced the Medicare premiums for 2025. Let’s take a quick look at what you need to know.

Part B Premium

The 2025 premium for Part B, medical insurance, will be $185 per month, an increase of $10.30 (5.9%). CMS attributes the increase to “projected price changes and assumed utilization increases that are consistent with historical experience.”

Many retirees have been concerned about the Part B premium because the Social Security cost-of-living adjustment, known as COLA, for 2025 is just 2.5%. But the Part B premium is increasing by 5.9% so there are questions about whether the hold harmless provision would apply. This provision prevents a recipient’s Social Security benefits from decreasing because of an increase in the Part B premium.

You may recall that, in 2016, there was no COLA; however, the monthly Part B premium increased $16.90 to $121.80. Almost 70% of Part B beneficiaries were protected by the provision and paid the 2015 premium ($104.90) every month of 2016.

That’s not likely to happen this time for two reasons. One, in 2016, CMS wrote in the third paragraph of the fact sheet that there was little doubt the hold harmless provision would apply. CMS does not mention the provision in the recent update. Two, the Part B premium is increasing $10 per month but the COLA will add about $50 to the monthly benefit for single recipients and $75 for couples. Very few Social Security recipients would need protection since the increase in monthly retirement benefits would cover the increased Part B premium.

IRMAA

Income-related Monthly Adjustment Amounts are pegged to the Part B premium so they will also increase in 2025.

The threshold for single filers and married individuals filing separately is $106,000, up from $103,000; for married individuals filing jointly, it’s $212,000, an increase from $206,000.

This year, monthly adjustments for Part D, prescription drug coverage, range from $12.90-$81 and in 2025 it will be $13.70-$85.80.

The thresholds for full Part B coverage (which apply to most people subject to IRMAA) are the same as for Part D. However, the CMS fact sheet did not include the table of adjustments for full Part B coverage, an interesting and unexpected omission. I reached out to CMS. I did not get a reply but, on November 13, I noticed that the “Full Part B Coverage” table is now incorporated into the fact sheet. (Find the table here.) The adjustments range from $74.00-$443.90. This year, the range is $69.90-$419.30.

I have often been asked by married individuals subject to the higher tiers of IRMAA whether filing separately would reduce what they pay. I show them the tables and they quickly realize they would pay considerably more because there are only two income tiers for those filing separately. In 2024, they are $130,000-$397,000 and over $397,000. The corresponding IRMAA numbers are $377.70 and $412.20. (A single person or individual filing jointly who crosses the $103,000 threshold pays $69.90.) Next year’s adjustments will no doubt be higher.

Medicare is essential, so people must pay the premiums. But, unfortunately, in today’s world, increasing costs are a fact of life. Hope for the lowest but budget for higher one.