As Medicare costs change in 2025, income is a key factor influencing what beneficiaries pay for Part B coverage.
While most Medicare enrollees will pay the standard monthly premium of $185.00, those with higher incomes may face additional charges under the Income-Related Monthly Adjustment Amount (IRMAA).
This adjustment is based on your modified adjusted gross income (MAGI) from the two years prior, so your 2023 income determines what you’ll pay in 2025. Part B, which covers doctor visits, outpatient care, lab work, and other non-hospital services, costs more as your income increases.
“The standard monthly premium for Medicare Part B enrollees will be $185.00 in 2025,” the CMS confirmed. “The annual deductible will be $257.”
Who pays more? Income-based premium brackets for 2025
If your income exceeds certain thresholds, your monthly premium increases based on a tiered system. These brackets are applicable to individuals and married couples filing jointly:
If your individual income is $106,000 or less, or $212,000 or less for couples, you’ll pay the standard premium of $185.00.
If your income is between $106,001 and $133,000 (individual) or $212,001 to $266,000 (joint), you’ll pay an extra $74.00, totaling $259.00 per month.
For incomes between $133,001 and $167,000 (individual) or $266,001 to $334,000 (joint), your monthly premium will increase by $185.00, for a total of $370.00.
Those earning between $167,001 and $200,000 (individual) or $334,001 to $400,000 (joint) will pay $295.90 more, making the total $480.90.
Incomes from $200,001 to $500,000 (individual) or $400,001 to $750,000 (joint) will face an IRMAA of $406.90, bringing their total monthly premium to $591.90.
If you earn over $500,000 individually or over $750,000 jointly, you’ll pay the maximum premium of $628.90 per month, which includes a $443.90 IRMAA.
Married individuals who file separately and have an income above $106,000 are subject to similar or higher surcharges.
Why this matters and what you can do
About 8% of Medicare beneficiaries will pay IRMAA in 2025. If you’re among them, here’s how you can prepare:
Watch for your IRMAA notice. The Social Security Administration (SSA) will mail you a letter if you’re subject to an adjustment.
Appeal if your income has changed. If your income has dropped due to life events like retirement, divorce, or job loss, you can request a new determination using SSA Form SSA-44.
Plan proactively. Because your 2023 income affects your 2025 premiums, consider steps like Roth conversions or charitable distributions to lower future MAGI.
Seek help if needed. If you’re struggling with premiums, programs like Medicare Savings Programs or Extra Help may assist in covering some or all costs.
“These changes help ensure that beneficiaries who can afford to contribute more to the Medicare program do so,” CMS explained in its 2025 announcement.
