Eight Medicare Changes in 2025 You Should Know

1. Medicare Part A Changes

• Premium: Premium: Those who work for 30 to 39 quarters in their lifetime will pay $278 per month in 2024, the same as 2023. Those who have worked less than 30 quarters in their lifetime will pay $505 per month in 2024, $1 less than the $500 monthly premium in 2023.

• Deductible: The Medicare Part A deductible has increased $32 from 2023, being $1,632 for each benefit period in 2024.

• Coinsurance: The coinsurance cost applies when care is required longer than 60 days. Medicare Part A recipients will be charged $408 per day from days 61 through 90, an increase of $8 from 2023. After 90 days, you will be charged a coinsurance of $816 per day for lifetime reserve days, up $16 from 2023. Your benefit period renews once you have been out of the hospital or nursing home for 60 consecutive days, and your deductible and coinsurance rates are reset.

2. Medicare Part B Changes

• Premium: The base cost for the Medicare Part B premium in 2024 is $174.70 for those who make less than $103,000 per year or couples who make less than $206,000 per year.

• Deductible: The deductible for Medicare Part B increased $14 from 2023, making it a total of $240 per year for 2024.

3. Medicare Part C (Medicare Advantage) Changes

Cost changes for Medicare Part C, also known as Medicare Advantage, depend on your individual carrier and plan. A significant update to Medicare Part C as of 2021 is that those with end-stage renal disease (ESRD) can enroll in Medicare Advantage plans.

4. Medicare Part D (Prescription Drug Plan) Changes

Similar to Medicare Part C, Medicare Part D plan cost changes depend on your carrier and plan. For 2024, the annual out-of-pocket maximum is $8,000 and the deductible, which can vary depending on your plan, will be no more than $545 for Medicare Part D. In 2023, you would pay a copay of up to $4.15 on generic medications and up to $10.35 for brand-name medications, or a 5% coinsurance fee. However, in 2024, this coinsurance no longer applies as a result of the Inflation Reduction Act.

5. Medicare Supplement Plan (Medigap) Changes

Rates for Medicare Supplement plans, also known as Medigap, vary based on the carrier. With Plan G in 2024, Medicare will cover its share of costs, and you’ll then pay out-of-pocket until you have reached a $2,800 deductible, after which your Plan G coverage will kick in, paying the remainder of the costs.

6. Inflation Adjustments for High-Income Beneficiaries

High-income beneficiaries pay more from Medicare Part B and Part D. The income brackets began to be adjusted for inflation in 2020.  In 2024, the start of the “high-income” range increased to $103,000 per year for individuals and $206,000 for married couples. The Part B premium for high-income beneficiaries ranges from $244.60 to $594.00 per month, depending on income.

7. Those with ESRD Can Join Medicare Advantage Plans

As of January 1, 2021, individuals with ESRD can also enroll in Medicare Advantage plans. Learn more about ESRD and Medicare Advantage plans.

8. Continuation of Telehealth Services after the COVID-19 Pandemic

Due to the COVID-19 pandemic, Original Medicare expanded its coverage for telehealth services. Currently, Original Medicare may pay for office, hospital, and other visits completed via telehealth. Through December 31, 2024, you can receive telehealth services at any location in the U.S., including your home. After December 31, 2024, you must be in an office or medical facility located in a rural area (in the U.S.) for most telehealth services.