How Do Medicare Premiums Work, and Do They Change Each Year?

If you’re turning 65 and starting Medicare soon, you’re probably wondering: How much is this going to cost me every month? And will that cost stay the same over time?

Let’s break it down together in plain language.

What Are Medicare Premiums?

A “premium” is the amount you pay each month for your Medicare coverage — like paying for car or homeowners insurance, only this covers your healthcare.

Here’s where premiums show up in Medicare:

✅ Part A (Hospital Insurance):Most people don’t pay a premium for Part A — it’s “premium-free” if you or your spouse worked and paid Medicare taxes for at least 10 years.

✅ Part B (Medical Insurance):Almost everyone pays a monthly premium for Part B. For 2025, the standard premium is $185/month, but if you earn more, you might pay extra (we’ll cover that in the next post!).

✅ Part D (Prescription Drug Coverage):If you enroll in a standalone Part D plan or a Medicare Advantage plan with drug coverage, you’ll pay a separate premium, which varies by the plan you choose.

✅ Medicare Advantage or Medigap Plans:If you go beyond Original Medicare and enroll in a private Medicare Advantage or Medigap (Supplement) plan, you’ll pay the plan’s premium on top of what you pay for Part B.

Do Premiums Change Every Year?

Yes, they usually do. Each year, Medicare reassesses costs — based on things like healthcare inflation, program funding, and policy changes.

Here’s what can change:

• The standard Part B premium

• Part D plan premiums

• Medicare Advantage and Medigap plan premiums

• Deductibles and copays (separate from premiums, but still part of your yearly costs)

Every fall, Social Security sends out a notice with the next year’s Medicare costs so you know what to expect come January.

Why Do Some People Pay More?

Your income plays a role. If you earn over a certain amount (based on your tax return from two years ago), you may pay an additional fee called IRMAA — the Income-Related Monthly Adjustment Amount. This affects both your Part B and Part D premiums.

We’ll unpack that in more detail in the next blog post.

What Should You Do Each Year?

Even if you’re happy with your current plan, we recommend reviewing your coverage each fall during Medicare Open Enrollment (October 15–December 7).

Why? Because:

✅ Your premiums may go up

✅ Your drug plan’s formulary may change

✅ A better plan option might save you money

Bottom Line

Medicare premiums aren’t a “set it and forget it” thing — they can change from year to year. But staying informed and doing a quick annual check-in can help you keep costs manageable and avoid surprises.

If you want help reviewing your Medicare costs or comparing plans for next year, we’re here for you. Let’s make sure you’re covered — at the right price.