The cost of Medicare in the 2025 enrollment year depends on whether a person paid taxes throughout their employment. Costs can include premiums, deductibles, copayments, and coinsurance.
Most people do not pay a monthly premium for Medicare Part A (hospital insurance). However, deductibles will apply for hospital stays.
Medicare Part B (medical insurance) will have a monthly premium and deductibles. Medicare Part D (prescription drugs) and Medicare Advantage (Part C) also have various costs.
As costs depend on individual circumstances, a person can contact Medicare directly for specific costs for their Medicare plan.
This article looks at what to expect from Medicare premiums and out-of-pocket costs in 2025.
Glossary of Medicare terms
- Out-of-pocket cost: This is the amount a person must pay for care when Medicare does not pay the total amount or offer coverage. Costs can include deductibles, coinsurance, copayments, and premiums.
- Premium: This is the amount of money someone pays each month for Medicare coverage.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before Medicare starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, coinsurance is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Medicare Part A costs include premiums, deductibles, and copayments.
Monthly premium
Most people do not pay a monthly premium for Medicare Part A. Medicare collects taxes from a person’s pay throughout their working life.
The eventual fee someone will pay for Part A depends on how many quarters they worked.
Those who worked at least 40 quarters in their lifetime while paying Medicare taxes receive a $0 premium. The premium is the amount someone pays for Medicare each month. Medicare Advantage plans and Medigap policies also charge a premium.
Most people qualify for premium-free Medicare Part A. The table below explains Part A premiums in more detail.
| Quarters of coverage | Monthly premium 2025 | Cost increase from 2024 |
|---|---|---|
| at least 40 quarters | $0 | $0 |
| at least 30 quarters or married to somebody with at least 30 quarters | $285 | $7 |
| fewer than 30 quarters | $518 | $13 |
Other costs
Other costs for Part A in 2025 include:
- a $1,676 deductible per benefit period
- $0 copayment for the first 60 days of a hospital stay during each benefit period
- $419 for hospital stay days 61 to 90
- $838 per lifetime reserve day for hospital stay day 91 onward, up to a maximum of 60 lifetime reserve days
If a person stays in a skilled nursing facility, they will need to pay:
- $0 for the first 20 days per benefit period
- $209.50 for days 21 to 100
- the full costs from day 101
Learn more about how much Medicare pays for hospital stays.
2026 Medicare changes
We’re currently updating this article to reflect 2026 costs and other changes.
Read more: Medicare cost changes in 2026
Medicare Part B costs can include a monthly premium, deductibles, and coinsurance.
Monthly premium
Part B requires a monthly premium, based on the individual’s yearly income. Therefore, people from different income brackets pay varying premiums.
In most cases, the monthly premium in 2025 is $185.
View the table below for a full overview of Plan B premiums based on individual yearly income and the joint income for a couple:
| Individual yearly income | Joint yearly income | Monthly premium |
|---|---|---|
| less than or equal to $106,000 | less than or equal to $212,000 | $185 |
| $106,000 to $133,000 | $212,000 to $266,000 | $259 |
| $133,000 to $167,000 | $266,000 to $334,000 | $370 |
| $167,000 to $200,000 | $334,000 to $400,000 | $480.90 |
| $200,000 to $500,000 | $400,000 to $750,000 | $591.90 |
| greater than or equal to $500,000 | greater than or equal to $750,000 | $628.90 |
Other costs
The Medicare Part B deductible for 2025 is $257.
The coinsurance is the amount a person will pay for the service after they have paid the deductible. Medicare Part B pays 80% of the cost of the service, while the individual pays the remaining 20%.
Learn about eligibility for Medicare Part B.
Medicare Part D covers prescription drugs. Private companies administer Part D plans, so the costs vary depending on a person’s chosen plan.
The cost of drugs with Part D will also depend on the specific drug and tier. Each Part D plan has a formulary, which is a list of drugs that the plan covers. Drugs in the lower tiers generally cost less, while drugs in tier 3 or the specialty tier usually have a higher copayment.
Monthly premiums also vary based on income, so those with higher incomes pay more for Part D premiums.
The table below explains the income-based premiums that individuals and couples pay in addition to the premiums specific to their plan.
| Individual yearly income | Joint yearly income | Monthly premium |
|---|---|---|
| less than or equal to $106,000 | less than or equal to $212,000 | the plan premium only |
| $106,000 to $133,000 | $212,000 to $266,000 | the plan premium plus $13.70 |
| $133,000 to $167,000 | $266,000 to $334,000 | the plan premium plus $35.30 |
| $167,000 to $200,000 | $334,000 to $400,000 | the plan premium plus $57 |
| $200,000 to $500,000 | $400,000 to $750,000 | the plan premium plus $78.60 |
| greater than or equal to $500,000 | greater than or equal to $750,000 | the plan premium plus $85.80 |
Phases of coverage
In 2025, Part D includes three phases of coverage. Costs can depend on which coverage phase a person is in:
| Coverage phase | Individual responsibility | Additional details |
|---|---|---|
| Deductible | 100% | In 2025, a person pays 100% of the cost until they meet the deductible of $590. |
| Initial coverage | 25% | This phase lasts until the plan has paid $2,000 in drug coverage. |
| Catastrophic coverage | 0% | N/A |
Learn more about Medicare Part D costs.
The cost of Medicare Advantage (Part C) plans will depend on the individual plan.
Costs can include:
- premiums
- deductibles
- copayments
- coinsurance
A person must also pay the Part B premium. Medicare Advantage includes Original Medicare parts A and B. It often also includes Part D.
Learn more about how much Medicare Advantage costs.
- the insurance provider
- the specific plan
- where the individual lives
Private insurance companies sell Medigap plans in agreement with Medicare. The plans provide supplemental coverage to help cover some of the costs that Original Medicare does not cover.
A person can contact Medigap to find out about the costs of their specific plan.
Late enrollment to a Medicare plan may include penalties, which are added to the cost of the monthly premium.
If a person enrolls late in Part A, their monthly premium may increase by up to 10%.
If someone enrolls late in Part B but qualifies for the Special enrollment period, they will not usually receive a penalty. However, they may have to pay an extra 10% for each year during which they could have enrolled.
If a person enrolls late in Part D, they may have to pay an extra 1% for each month that they could have enrolled. This may apply if they do not join Medicare Plan D when they first get Medicare or if they go at least 63 days without creditable drug coverage.
However, individuals usually do not need to pay a Part D penalty if they have existing creditable drug coverage or qualify for Medicare Extra Help.
Learn more about Medicare late enrollment penalties.
The premiums and out-of-pocket expenses for Medicare parts A and Part B increased from 2024 to 2025. The table below outlines the changes.
| Service | 2024 cost | 2025 cost | Increase |
|---|---|---|---|
| Part A deductible | $1,632 | $1,676 | $44 |
| hospital coinsurance costs for days 61 to 90 | $408 per day | $419 per day | $11 |
| hospital coinsurance costs for day 91 onward | $816 per day | $838 per day | $22 |
| Medicare Part B standard monthly premium | $174.70 | $185 | $10.30 |
| skilled nursing facility for days 21 to 100 | $204 | $209.50 | $5.50 |
| Part B deductible | From $240 | From $257 | $17 |
The reason Medicare costs increase each year is unclear. However, the Centers for Medicare & Medicaid Services (CMS) suggests that Medicare adjusts rates for copayments, deductibles, and premiums according to the Social Security Act.
Prescription drug costs also increase regularly, which is another possible contributing factor to increasing Medicare Part D costs.
Medicare Part A costs in 2025 include a monthly premium of either $0, $285, or $518. Most people do not have a monthly premium, which is the rate for those who have worked at least 40 quarters in their lifetime. Other Part A costs include deductibles and copayments.
Medicare Part B costs include a monthly premium, which is $185 for most people. The deductible is $257, and a person will usually pay 20% of the costs of the services they receive.
The costs of Medicare Part D and Medicare Advantage can depend on the specific plan, while drug costs can also vary greatly.
Medigap costs will depend on factors such as the specific insurance provider, where a person lives, and the specific plan.
Several factors contribute to increased costs, including rising prescription drug prices. Income also affects the cost of Medicare Part B premiums, which increase for people who earn higher wages.
A person can contact Medicare or their insurance provider to find out more about the costs of their plan in 2025.
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.