Medicare Part B Premiums Are Rising—Here’s How to Dodge the $10.30 Increase Hitting in 2025

For the millions of Americans who depend on Medicare for their healthcare coverage, 2025 brings a significant development: an increase in the standard monthly Medicare Part B premium. While a $10.

30 jump may not sound extreme on its own, for retirees living on fixed incomes or carefully balancing their household budgets, this increase is cause for concern—especially as it comes during a year when the Social Security cost-of-living adjustment (COLA) is rising by just 2.

5%, one of the smallest increases in years.

Understanding what’s behind this change—and, more importantly, what you can do about it—can help you navigate the coming year with confidence and possibly avoid the financial sting altogether.

What’s Causing the Premium Hike?

The Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly premium for Medicare Part B will increase from $174.

70 in 2024 to $185.00 in 2025. This represents a 5.9% increase, far outpacing the year’s modest Social Security COLA. The annual Part B deductible will also rise from $240 to $257.

According to CMS, the rise in premiums is driven by multiple factors, including increased utilization of healthcare services among beneficiaries, inflation in medical costs, and the projected expenses tied to new and increasingly popular outpatient treatments—particularly high-cost injectable drugs that fall under Part B coverage.

Part B, which covers physician services, outpatient hospital care, preventive services, and some home health care, is a critical component of Original Medicare.

Unlike Part A, which is typically premium-free for most enrollees, Part B always comes with a monthly cost, and the annual adjustments to that cost can significantly impact seniors on tight budgets.

How the Increase Stacks Up Against Social Security Gains

The Social Security Administration has announced a 2.5% COLA for 2025, which translates to an average benefit increase of about $49 per month for retired workers. However, with the Medicare Part B premium going up by $10.30, more than 20% of that COLA could be immediately absorbed by healthcare costs.

For those on the lower end of the Social Security benefits scale, the impact is more dramatic. Consider someone receiving $1,500 per month in benefits—their COLA increase will be roughly $37.50, of which $10.

30 will go to the Medicare premium increase, leaving only about $27 in actual additional take-home income.

This dynamic is especially concerning in a year when inflation remains elevated for essentials like food and housing. The increase in Part B premiums underscores why many retirees feel like they’re running just to stay in place, financially speaking.

Who Pays Even More: The IRMAA Factor

While the standard Part B premium is $185.00 for most enrollees, around 8% of Medicare beneficiaries pay higher premiums based on their income.

Known as the Income-Related Monthly Adjustment Amount (IRMAA), this surcharge applies to individuals with modified adjusted gross incomes (MAGI) above $106,000 or couples earning more than $212,000, based on tax returns from two years prior.

In 2025, the highest-income bracket could see monthly Part B premiums of $628.50 or more. That’s over $7,500 a year per person, a steep price to pay for outpatient coverage, even for wealthier retirees.

However, IRMAA isn’t always set in stone. If your income has dropped since 2023 due to retirement, divorce, or another major life event, you can file an appeal using Social Security Form SSA-44 to request a lower premium tier. Many retirees aren’t aware of this option and end up overpaying unnecessarily.

The Hold Harmless Provision: Will It Protect You?

One bit of good news is the “hold harmless” provision, which protects many Social Security recipients from seeing their net benefit decrease due to rising Medicare premiums.

Under this rule, if your Part B premium is automatically deducted from your Social Security payment, and you’re not subject to IRMAA, your increase in premiums cannot exceed the dollar amount of your COLA increase.

In practice, this means that if your Social Security check is modest and your COLA increase is small, you may not pay the full $10.30 premium hike. Instead, your premium would be adjusted upward only to the extent your Social Security payment also increases.

However, not all beneficiaries are eligible for this protection. If you pay your premiums directly (not through automatic deduction), are enrolled in Medicaid, or fall into an IRMAA bracket, you may not be covered by hold harmless provisions. It’s a helpful buffer, but not a blanket solution.