The Washington Report
November 20, 2024
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While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Health
CMS Releases 2025 Medicare Parts A & B Premiums and Deductibles; Medicare Part D Income-Related Monthly Adjustment Amounts
On November 8, 2024, the Centers for Medicare & Medicaid Services (CMS) released the 2025 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2025 Medicare Part D income-related monthly adjustment amounts.
Medicare Part A covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services. The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,676 in 2025, an increase of $44 from $1,632 in 2024. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2025, beneficiaries must pay a coinsurance amount of $419 per day for the 61st through 90th day of a hospitalization ($408 in 2024) in a benefit period and $838 per day for lifetime reserve days ($816 in 2024). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $209.50 in 2025 ($204.00 in 2024).
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
Since 2011, a beneficiary’s Part D monthly premium has been based on his or her income. These individuals will pay the income-related monthly adjustment amount in addition to their Part D premium. Part D premiums vary by plan and, regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicare. The 2025 Part D income-related monthly adjustment amounts for high-income beneficiaries are shown in a table found on the CMS Fact Sheet. Please refer to the CMS Fact Sheet below for specific provisions.
The CMS Fact Sheet is available here.
The Calendar Year 2025 Inpatient Hospital Deductible and Hospital and Extended Care Services Coinsurance Amounts Notice is available here.
The Medicare Part B Monthly Actuarial Rates, Premium Rates, and Annual Deductible Beginning January 1, 2025, Notice is available here.