The Social Security Administration previously announced a COLA for 2025, increasing benefits by 2.5%. The increase will affect millions of Social Security beneficiaries. Now, Social Security beneficiaries are wondering about the Medicare Part B premium increase. Let’s take a look at the projected Medicare Part B Premium Increase for 2025.
Social Security payment of $185
The Social Security Administration announced a 2.5% increase in the 2025 COLA in October 2024, raising hopes among Social Security recipients. Although the 2025 COLA increase is one of the lowest increases since 2021, it will increase the payment by $50. On average, a retiree receives Social Security payments of about $1,900, with a COLA increase that will increase by $50.
With the COLA announcement, retirees or people who are eligible for Medicare benefits, especially Part B, expect changes in their Premium payments. Medicare Part B covers home health care, outpatient care, durable medical equipment, services from other health care providers, and other preventive measures.
Recipients should check their Medicare Part B premium payments because they are deducted from their monthly Social Security check. The SSA has not announced any changes to the Medicare Part B Premium, however, some reliable sources predict that the Medicare Part B Premium will increase by 5.9%, estimated at $185 per month.
Who gets the Social Security Medicare Part B benefit?
The federal government provides health insurance and other benefits with Medicare benefits, which are funded by payroll taxes under the Federal Insurance Contributions ACT (FICA). As we mentioned, Medicare Part B covers insurance for emergency services, outpatient medical care, doctor visits and more to ensure that retirees can have access to quality health care without any financial problems.
According to SSA, general eliMrUS citizens can use Medicare benefits as follows:
- You should be a permanent legal resident of the US.
- Your age should be 65 or older
- You are 65 or older and have a disability that limits your ability to work
- You have amyotrophic lateral sclerosis or any end-stage kidney disease.
A beneficiary’s gross income affects the Medicare Part B premium because high-income earners may have to pay more than other beneficiaries depending on their gross income.
The SSA advises retirees to sign up for Medicare Part B when they become eligible for Medicare when they are about to turn 65 or have turned 65 to avoid penalties when they sign up for it later.
How does your income affect your Medicare Part B premium?
As we mentioned, gross income can affect the Medicare Part Premium. The agency adjusts Social Security for inflation, as well as Medicare premiums. The monthly premium for access to affordable health care may be affected based on your modified adjusted gross income reported on your tax return from 2 years ago.
Retirees who opt for Medicare Part B insurance can expect a premium increase of $10.30 to $185 in 2025, compared to a payment of $174.70 in 2024. The gross income effect for 2025 will be updated soon by the authorities. So, older people who are still working pay the premium for 2025 based on their annual income in 2023.
Under current rules, beneficiaries pay the following premium in 2024 based on their reported income in 2024:
| Submission status | Medicare Part B is paid every month | ||
| Individuals | Married PhilinMr Returning together | Married, but filed separately | |
| $103,000 or less | $206,000 or less | $103,000 or less | $174.70 |
| $103,001 – $129,000 | $206,001 – $258,000 | ON | $244.60 |
| $129,001 – $161,000 | $258,001 – $322,000 | ON | $349.40 |
| $161,001 – $193,000 | $322,001 – $386,000 | ON | $454.20 |
| $193,001 – $500,000 | $386,001 – $750,000 | $103,001 – $397,000 | 559 dollars |
| $500,000 or more | $750,000 or more | $397,000 or more | 594 dollars |
When can you expect the $185 Social Security Medicare Part B Premium to be announced?
Medicare beneficiaries can expect an announcement of premium increases soon. According to reports, the SSA announces changes in the Medicare Part B premium almost every year based on inflation.
Generally, the authority announces the increase by the end of the year for the following year, so you can expect an announcement in November or December 2024 for the 2025 increase. The Administration will notify recipients with notices of their increased Social Security payments due to the 2025 COLA increase and the amounts they will receive in the mail to deduct their Medicare premium in early December 2024.
Beneficiaries should understand that the notice will contain the exact amount of benefits to which they are entitled with all deductions from their 2025 wages.
Impact of $185 Medicare Part B Premium
As we mentioned, the Medicare Part B premium is expected to increase by $10.30, which means that the increase in Social Security COLA payments in 2025 will decrease by $10.30.
The 2025 COLA adjustment increases the payout by $50, and with the projected premium increase of $10.30, it would translate to $40.
So, beneficiaries can expect a $40 increase in Social Security payments for 2025 based on the projected increase, which is quite a large reduction in payments. Beneficiaries should understand that the increase will directly affect their benefit payments.
Higher benefit recipients with a lower income may not be affected by the premium increase, but if you have a higher income, you may be affected by the increase in premium payments. In the coming years, the premium amount can increase at a rate of over $100 in seven years.
Medicare Part B premiums apply to many senior US citizens because they cover basic hospital bills that can reduce health care costs when they are unable to earn enough due to their age or health problems. So, be aware of the premium cost which may increase in the coming days.
