{"id":38082,"date":"2024-11-11T22:25:37","date_gmt":"2024-11-11T22:25:37","guid":{"rendered":"https:\/\/isafespend.com\/?p=38082"},"modified":"2024-11-11T22:25:38","modified_gmt":"2024-11-11T22:25:38","slug":"probably-no-surprise-medicare-part-b-will-cost-more-in-2025","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=38082","title":{"rendered":"Probably No Surprise: Medicare Part B Will Cost More In 2025"},"content":{"rendered":"
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On November 8, the Centers for Medicare and Medicaid Services announced the Medicare premiums and costs for 2025. Let\u2019s take a quick look at what you need to know.<\/p>\n

Part B Premium and Deductible<\/h2>\n

The 2025 premium for Part B, medical insurance, will be $185, an increase of $10.30 (5.9%). CMS attributes the increase to \u201cprojected price changes and assumed utilization increases that are consistent with historical experience.\u201d<\/p>\n

Many retirees have been concerned about the Part B premium because the Social Security cost-of-living adjustment, known as COLA, for 2025 is just 2.5%. But the Part B premium is increasing by 5.9% so there are questions about whether the hold harmless provision would apply. This provision prevents a recipient\u2019s Social Security benefits from decreasing because of an increase in the Part B premium.<\/p>\n

You may recall that, in 2016, there was no COLA; however, the Part B premium increased $16.90 to $121.80. Almost 70% of Part B beneficiaries were protected by the provision and paid the 2015 premium ($104.90) all 12 months.<\/p>\n

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That\u2019s not likely to happen this time for two reasons. One, in 2016, CMS wrote in the third paragraph of the fact sheet that there was little doubt the hold harmless provision would apply. CMS does not mention the provision in the recent update. Two, the Part B premium is increasing $10 per month but the COLA will add about $50 to the monthly benefit for single recipients and $75 for couples. Very few Social Security recipients would need protection since the increase in monthly retirement benefits would cover the increased Part B premium.<\/p>\n

IRMAA<\/h2>\n

Income-related Monthly Adjustment Amounts (IRMAA) are pegged to the Part B premium so they will also increase in 2025.<\/p>\n