Search...
Explore the RawNews Network
Follow Us

Medicare Part B Will Cost more in 2025 It comes as no surprise: Medicare Part B's costs will increase exponentially

[original_title]
0 Likes
November 11, 2024

Medicare premiums will become harder to bear come 2025. On November 8, the Centers for Medicare and Medicaid Services released its 2025 premiums and costs information; let’s quickly go over what we know so far about them.

Part B Premium and Deductible
For 2025, Part B medical insurance premiums will increase by 10.30 (5.9%). CMS attributes this rise to projected price changes as well as assumed utilization increases that correspond with historical experience.

Many retirees have expressed concern regarding the Part B premium since Social Security COLA, or cost-of-living adjustment, for 2025 is only 2.5%; yet Part B premium increases are up 5.9% annually causing many retirees to wonder whether the hold harmless provision would apply; this provision prohibits recipients’ benefits from decreasing due to an increase in Part B premium payments.

Remember in 2016 there was no COLA, yet Part B premiums increased $16.90 from $104.90 to $121.80; nearly 70 percent of beneficiaries took advantage of a provision to maintain 2015 payment ($104.90) throughout 2016.
As is likely not to occur this time for two reasons. One, CMS wrote in its 2016 fact sheet that there was little doubt the hold harmless provision would apply; CMS does not mention this provision in their recent update. Two, Part B premium increases are only expected to rise $10 monthly but COLA increases are projected to add around $50/month and $75/month, meaning many recipients of Social Security do not require extra protection, since their increased monthly retirement benefits cover any increases to Part B premium.

Income-Related Monthly Adjustment Amounts (IRMAAs) are tied directly to Part B premium increases; accordingly they will also rise accordingly in 2025.

Single filers and married individuals filing separately now face an income threshold of $106,000 compared with 103,000 last year; for married filers filing jointly it has increased from $206,000.
This year, monthly adjustments for Medicare Part D prescription drug coverage range between $12.90-$81; in 2016/2017 this number will range between 13.70-88.580.
Full Part B coverage thresholds (which apply to most individuals covered under IRMAA) are identical to Part D’s thresholds; however, CMS did not include an adjustment table for full Part B. I have reached out to CMS regarding this matter and will provide updates here if/when their reply comes through or when numbers become available.

Marriage individuals subject to IRMAA’s higher tiers often ask me whether filing separately would reduce what they owe. After showing them my tables, however, they quickly realize it would increase what they pay because only two tiers exist for those filing separately: between $130,000-$397,000 in 2024 (therefore adjustments of $377.70/$412.22). A single individual filing jointly who crosses over $103,000 threshold pays $69.90 in comparison. Future adjustments could likely increase accordingly.
Medicare coverage is essential and its premiums must be paid, yet rising costs have become part of life. Aim for lower premium costs but plan for greater expenses in future budgeting efforts.

Social Share
Thank you!
Your submission has been sent.
Get Newsletter
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus

Notice: ob_end_flush(): Failed to send buffer of zlib output compression (0) in /home3/n489qlsr/public_html/wp-includes/functions.php on line 5464