Here’s How Much Medicare Will Cost in 2025, According to Suze Orman
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Medicare enrollees will see several changes in costs and other features in 2025, which could affect their finances. One of the biggest changes is a $2,000 cap on what Medicare enrollees must pay out of pocket for prescription drug costs. As the AARP noted, the change will have a “ripple effect” on the other costs and coverage of Part D and Medicare Advantage plans.
Prescription drugs are only one of the out-of-pocket costs Medicare customers face. In a recent blog post, financial guru Suze Orman explained how much Medicare will cost in 2025. Here are five Medicare costs you can expect in 2025, according to Orman.
Medicare Part B Premium
Medicare Part B covers all your doctors’ visits and tests, and most Medicare enrollees have to pay a premium each month for this coverage, Orman wrote. If you already collect Social Security, the Part B premium is deducted from your monthly Social Security payment automatically.
As Orman explained, the standard Part B premium is $185 per person per month. That’s an increase from $174.70 in 2024. However, that amount can go much higher if you earn a certain amount of income.
For example, the total monthly premium in 2025 is $628.90 for individuals with an annual modified adjusted gross income (MAGI) of $500,000 or more, according to the Centers for Medicare & Medicaid Services (CMS). That same premium applies to beneficiaries who file joint tax returns and have an annual MAGI of at least $750,000.
If you are enrolled in original Medicare, Orman strongly recommended paying for a supplemental Medigap insurance plan. “For Original Medicare enrollees, the government only pays 80% of part B costs. A Medigap policy will help cover the 20% of costs you are responsible for,” she said.
Medicare Part B Deductible
“In 2025, you must pay the first $257 for Part B services before coverage kicks in,” Orman explained. That’s up from $240 in 2024.
That increase is “mainly due to projected price changes and assumed utilization increases that are consistent with historical experience,” according to the CMS.
Medicare Part A
As Orman noted, Medicare Part A covers in-hospital costs. She explained that if you worked for 10 years or more (and paid taxes for Social Security and Medicare during that time), there’s no premium cost.
However, if you are hospitalized, you will pay a Part A deductible. This deductible is $1,676 for 2025 — up from $1,632 in 2024. It covers out-of-pocket costs for the first 60 days of covered care, Orman explained.
You will also have to pay a daily co-insurance amount of $419 if you are hospitalized for between 60 and 90 days.
Nursing Home Care
As part of Medicare, some coverage for nursing home care is provided. However, this covers only skilled care, according to Orman. For 2025, Medicare enrollees have to pay a daily co-insurance of $209.50 if they spend between 21 and 100 days at a skilled nursing care facility. That’s up from $204 in 2024.
Medicare doesn’t provide coverage after 100 days.
Prescription Drugs
Enrollees in original Medicare need to have a separate Part D insurance plan for prescription drug costs. For 2025, expect to pay an average of $40 per month for this premium, Orman explained. Most Medicare Advantage plans, however, provide coverage for presciptions.
There is a $2,000 cap for 2025, Orman said. That means you don’t have to worry about paying more than that out of pocket for prescription drugs. Previously, this limit was $8,000, per Medical News Today.
More From GOBankingRates
