Original Medicare Part B
Premiums are based upon your AGI. See the IRMAA report for more information.
Premiums, Deductibles, and Copayments
The standard monthly premium for Medicare Part B in 2025 is $185. However, your premium may be higher based on your income. Individuals with higher incomes may pay an Income-Related Monthly Adjustment Amount (IRMAA), which increases the premium.
Deductibles In 2025, the annual deductible for Medicare Part B is $257. This amount may change in subsequent years, so it's important to check for updates.
Copayments/Coinsurance After meeting the deductible, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment.
Select a premium level - this will impact the costs modeled because out of pocket costs may be impacted by the provider you select. Most doctors accept assignment — but if yours doesn’t, you’ll need to cover the excess charges out-of-pocket, unless you have Medigap Plan G or Plan F, which cover these. If your doctor opts out of Medicare, you’ll need to pay them directly—and often in full—via private contracts.
Medicare Advantage Plans
With a Medicare Advantage plan you still have to pay the Part B premium. Some plans may have a $0 premium and may help pay all or part of your Part B premium. Most plans include Medicare drug coverage (Part D).
Medicare Advantage Plan Premiums, Deductibles, and Copayments
Premiums, deductibles, and copayments can vary based on the plan's coverage and provider network as well as additional benefits offered (dental, vision, hearing) but not health status.
Plans with more coverage usually have higher premiums than plans with less coverage.
Plans with high deductibles usually have lower premiums than standard plans, but you'll pay a higher deductible before your coverage starts.
Select a premium level - this will impact the costs modeled because out of pocket costs may be impacted by the provider you select. Medicare Advantage premiums are fixed by the insurance provider, but your out-of-pocket costs depend heavily on whether your doctors accept your plan. So your doctor preferences can indirectly increase or decrease your total health care spending.
Medigap/Supplement Plans
With a Medigap plan you still have to pay the Part B premium. Plans do not help pay all or part of your Part B premium. Plans do not include Medicare drug coverage (Part D).
Medigap/Supplement Plan Premiums, Deductibles, and Copayments
Can vary based on age, gender, health status, location, and insurance company rates. There are 3 types of rating methods
Community Rating Everyone pays the same premium regardless of age (New York, Connecticut, Vermont)
Issue-Age Rating Premium is based on your age at the time you enroll — does not increase as you age
Attained-Age Rating Premium is based on your current age and increases as you get older
Plans with more coverage usually have higher premiums than plans with less coverage.
Plans with high deductibles usually have lower premiums than standard plans, but you'll pay a higher deductible before your coverage starts.
Select a premium level - this will impact the costs modeled because out of pocket costs may be impacted by the provider you select. For example if your doctor does not accept Medicare assignment, Plan G covers Part B excess charges, preventing surprise bills while plan N does not.