Retirees hoping for relief from a 2.5% Social Security cost-of-living adjustment (COLA) in 2025 may find the gain diminished by rising Medicare costs. Monthly Part B premiums will climb to $185, a $10.30 increase, while the Part B deductible rises by $17 to $257. Hospital deductibles and coinsurance rates under Part A will also increase.
Experts warn these hikes will disproportionately impact those with lower Social Security benefits. For example, a retiree receiving $1,200 monthly will see their COLA drop to 1.6% after Medicare adjustments. However, “hold harmless” rules shield those receiving minimal benefits from the full premium hike. Wealthier beneficiaries will face even higher Part B premiums under income-based surcharges.
Beneficiaries can check their updated benefits online or by mail starting in December.
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