As you approach Medicare enrollment, it’s important to understand the benefits, how much it will cost you, and whether it’s right for your needs.
An important thing to know about Medicare is the income-related monthly adjustment amount (IRMAA). An IRMAA is an additional premium paid by higher-income Medicare beneficiaries and may affect how much you pay for specific parts of Medicare. Here’s what to know, so you can be prepared for IRMAA costs and how they may affect you.
Costs and Benefits of Medicare Part A
Medicare Part A generally doesn’t have a monthly premium. That’s because most people have worked at least 40 quarters of Medicare-covered employment. This is determined by the Social Security Administration, and of people meet the requirement for premium-free Part A. You won’t have to worry about a premium increase with Part A, but the deductible often increases.1 For example, the Part A deductible for 2025 is $1,676 compared to $1,632 in 2024.2
Costs and Benefit of Medicare Part B and Part D
Part B Coverage
| Single, filing individually | Married, filing jointly | Married, filing separately | Total monthly premium amount |
|---|---|---|---|
| $106,000 or less | $212,000 or less | $106,000 or less | $185.00 |
| Above $106,000 up to $133,000 | Above $212,000, up to $266,000 | Not applicable | $259.00 |
| Above $133,000 up to $167,000 | Above $266,000, up to $334,000 | Not applicable | $370.00 |
| Above $167,000 up to $200,000 | Above $334,000, up to $400,000 | Not applicable | Not applicable |
| Above $200,000 and less than $500,000 | Above $400,000 and less than $750,000 | Above $106,000 and less than $394,000 | $591.90 |
| $500,000 or above | $750,000 or above | $394,000 or above | $628.90 |
Part D Coverage
If your yearly income in 2023 (for what you pay in 2025) was:
| Single, filing individually | Married, filing jointly | Married, filing separately | IRMAA (in 2025) |
|---|---|---|---|
| $106,000 or less | $212,000 or less | $106,000 or less | Your plan premium |
| Above $106,000 up to $133,000 | Above $212,000, up to $266,000 | Not applicable | $13.70 + your plan premium |
| Above $133,000 up to $167,000 | Above $266,000, up to $334,000 | Not applicable | $35.30 + your plan premium |
| Above $167,000 up to $200,000 | Above $334,000, up to $400,000 | Not applicable | $57.00 + your plan premium |
| Above $200,000 and less than $500,000 | Above $400,000 and less than $750,000 | Above $106,000 and less than $394,000 | $78.60 + your plan premium |
| $500,000 or above | $750,000 or above | $394,000 or above | $85.80+ your plan premium |
Educating yourself about the various parts of Medicare will help you understand the benefits and how IRMAA affects the premium you pay. In short, Medicare premiums typically increase each year, and you’ll want to make sure you’re budgeting for the increase in your retirement financial plan. Even though the increase may seem small, the rising premiums and deductibles can take a toll on your finances over time.
Schedule Your Appointment to Get Coverage Today
With our retirement planning services, you can get the support and information you need to better prepare for your later years. Get in touch with us today and let us help you find the right Medicare plan for your income, needs, and goals.
This blog is up to date as of February 2025 and has not been updated for changes in the law, administration or current events.
This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.
Sources:
12025 Medicare Parts A & B Premiums and Deductibles; November 2024, accessed 2/21/2025
2Medicare Costs, Medicare.gov; accessed 2/12/2025
