Medicare Premiums Increase for 2025

In 2025, Medicare Part B premiums will see a notable increase, with the standard monthly premium rising to $185, a 5.9% hike from 2024. High-income beneficiaries will face even steeper charges due to the Income-Related Monthly Adjustment Amount (IRMAA), with premiums varying based on adjusted gross income from two years prior. The proposed bipartisan site-neutral payment policy aims to equalize Medicare payments across different healthcare settings, potentially yielding savings for reinvestment in safety-net hospitals, although it faces strong opposition from hospitals concerned about access to care. Additionally, there are calls for Congress to prevent a scheduled 2.8% cut in physician Medicare pay in 2025 while advocating for long-term payment reforms. Meanwhile, Project 2025, a conservative plan for Medicare reform under President-elect Trump, proposes making Medicare Advantage the default option for enrollees, aiming to reduce government spending and enhance efficiency. These developments collectively indicate a significant shift in the structure and funding of Medicare.