Medicare Part B premiums are set to increase by 5.9% in 2025, raising the standard monthly premium to $185 for individuals earning up to $106,000 annually and couples earning up to $212,000. This adjustment reflects the Centers for Medicare and Medicaid Services’ (CMS) response to rising healthcare costs, particularly in outpatient and physician services. For higher-income beneficiaries, premiums will be adjusted based on their filing status on their modified adjusted gross income (MAGI). The Social Security Administration determines Medicare Part B premiums based on MAGI from 2-years prior. For example, premiums for 2025 will be based on MAGI from the 2023 tax return.
Additionally, the annual deductible for Part B will increase by 7.1%, reaching $257. This change is significant when compared to the 2.5% cost-of-living adjustment (COLA) for Social Security benefits in 2025, which will bring the average monthly benefit to $1,976. The disparity between the Part B premium increase and the COLA suggests that healthcare costs are outpacing general inflation, impacting retirees’ disposable income. These adjustments underscore the importance of financial planning for retirees, as healthcare expenses continue to rise.
Healthcare expenses are a significant concern for retirees, making it essential to incorporate these costs into retirement planning. For those approaching retirement and younger individuals, adopting a healthier lifestyle can be a proactive strategy to potentially reduce future healthcare expenditures.
Did You Know?
Your employer sponsors this financial wellness benefit from Francis LLC. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
