Medicare Costs and Social Security COLA for 2025

The Centers for Medicare and Medicaid Services (CMS) announced that Medicare Part B premiums will increase by 6% to $185 in 2025, with higher income individuals paying more due to income-related monthly adjustments affecting about 8% of beneficiaries. Additionally, Part A premiums and deductibles will rise, while Part D prescription drug coverage will see a slight decrease in premiums. Social Security recipients will experience a 2.5% cost-of-living adjustment (COLA) in 2025, which is lower than the previous year's 3.2% increase. The payment schedule for Social Security benefits will be adjusted due to holiday shifts, impacting the timing of funds for retirees who heavily rely on these benefits for financial stability. The significance of Social Security's COLA is underscored by its role in mitigating inflationary pressures for retirees, maintaining purchasing power amidst rising costs.