In 2025, Medicare premiums, deductibles, and income-related adjustments have all been updated.
Here’s an overview of changes:
Medicare Part B Premiums and Deductibles:
- Standard Premium: Monthly premium has increased to $185, up from $174.70 in 2024.
- Annual deductible: The Part B deductible is now $257, up from $240 in 2024.
Income-Related Monthly Adjustment Amount (IRMAA):
Beneficiaries with higher incomes are subject to additional charges known as Income-Related Monthly Adjustment Amount (IRMAA), which affect both Part B and Part D premiums. These adjustments are based on your Modified adjusted gross income (MAGI) from two years prior. For example, 2025 premiums are based on 2023 income.
Part B Premiums with IRMAA:
Single filers:
- MAGI up to $106,000: $185/month
- MAGI from $106,001 - $133,000: $259/month
- MAGI from $133,001 - $167,000: $370/month
- MAGI from $167,000 - $200,000: $480.90/month
- MAGI from $200,000 - $500,000: $591.90/month
- MAGI over $500,000: $628.90/month
Married filers:
- MAGI up to $212,000: $185/month
- MAGI from $212,001 - $266,000: $259/month
- MAGI from $266,001 - $334,000: $370/month
- MAGI from $334,000 - $400,000: $480.90/month
- MAGI from $400,001 - $750,000: $591.90/month
- MAGI over $750,000: $628.90/month
Part D Premiums with IRMAA:
Part D premiums vary by plan, but additional income leads to additional premium cost as follows:
Single filers:
- MAGI up to $106,000: $0/month
- MAGI from $106,001 - $133,000: Extra $13.70/month
- MAGI from $133,001 - $167,000: Extra $35.30/month
- MAGI from $167,000 - $200,000: Extra $57/month
- MAGI from $200,000 - $500,000: Extra $78.60/month
- MAGI over $500,000: Extra $85.80/month
Married filers:
- MAGI up to $212,000: $0/month
- MAGI from $212,001 - $266,000: Extra $13.70/month
- MAGI from $266,001 - $334,000: Extra $35.30/month
- MAGI from $334,000 - $400,000: Extra $57/month
- MAGI from $400,001 - $750,000: Extra $78/60/month
- MAGI over $750,000: Extra $85.80/month
Financial Planning Considerations:
To plan for these changes, here are a few financial planning strategies to keep in mind.
- Income management: Utilize strategies to help manage your MAGI year to year. Examples are charitable contributions from IRAs and Roth conversions prior to age 63… Medicare starts at age 65 and premiums are based on two years prior.
- Appeals: If you’ve experienced a life-event that has reduced income such as divorce or retirement, you can appeal your IRMAA determination by filing form SSA-44 with the Social Security Administration.
Keep these changes in mind this year and plan for future years accordingly.
Together, we can work to keep you on-track toward your financial goals.
Request a consultation to learn more.
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