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Here’s some news from the Social Security Administration (SSA): Monthly benefit payments will increase slightly for Social Security beneficiaries in 2025.
The 2025 cost-of-living adjustment (COLA) is 2.5%, which means beneficiaries collecting the average Social Security retirement benefits payment will see their payments increase ~$50 per year.
The 2025 Social Security COLA could affect your monthly budget.The 2025 COLA of 2025 will increase benefits payments for 70 million+ Americans.1
Each year, the Social Security Administration reviews changes in the cost of living that could affect beneficiaries. The amount paid out to Social Security beneficiaries is then updated to reflect these changes.
As the cost of living increases, so do Social Security benefits.
Social Security beneficiaries include retirees, Americans with qualified disability status and young survivors of deceased Social Security beneficiaries.
The 2025 COLA of 2.5% is a higher increase than on average.
Over the past decade, the COLA has averaged 1.65% per year, so the 2.5% increase for 2025 is above the recent average and is the lowest since 2017.
There were only three instances since the COLA was introduced that the COLA wasn’t increased (in 2009, 2010 and 2015).2
While the 2025 COLA is set to increase, so too is the 2025 Medicare Part B premium.
The 2025 Medicare Part B premium rose to $185 per month.
Some beneficiaries collect smaller Social Security benefit payments and pay less than the standard Medicare Part B premium.
In some cases (if they have their Part B premium deducted from their monthly Social Security benefit payments), the 2025 COLA may not be enough to cover their increased Part B premiums. This essentially reduces their Social Security benefits from the year before.
The hold harmless rule protects people in this situation by keeping the increase in their Medicare Part B premium equal to the increase in their Social Security benefits.
The hold harmless provision doesn’t apply to you if:
You’re new to Medicare in 2025
You’re enrolled in a Medicare Savings Program (MSP)
You’re required to pay a Medicare IRMAA in 2025
Medicare beneficiaries with a certain level of income are required to pay higher Medicare Part B premiums. This increased amount is known as the Medicare IRMAA, or Income-Related Monthly Adjusted Amount.
The 2025 IRMAA applies a different Part B premium to beneficiaries in specific income brackets based on their reported income from 2023.
The 2025 Medicare IRMAA amount will be indexed according to inflation.
The change in how 2025 IRMAA costs are calculated means the income thresholds that are the basis for IRMAA charges will increase slightly. This will likely decrease the number of beneficiaries who are affected by the Part B IRMAA, and it will slow how quickly a beneficiary might progress into a higher income bracket.
The 2025 IRMAA costs are based on reported income from 2023. The chart below illustrates how these charges affect Part B beneficiaries and their 2025 Part B premiums.
| 2023 Individual tax return | 2023 Joint tax return | 2023 Married and separate tax return | 2025 Part B premium |
|---|---|---|---|
| $106,000 or less | $212,000 or less | $106,000 or less | $185.00 |
| More than $106,000 and up to $133,000 | More than $212,000 and up to $266,000 | N/A | $259.00 |
| More than $133,000 and up to $167,000 | More than $266,000 and up to $334,000 | N/A | $370.00 |
| More than $167,000 and up to $200,000 | More than $334,000 and up to $400,000 | N/A | $480.90 |
| More than $200,000 and less than $500,000 | More than $400,000 and less than $750,000 | More than $106,000 and less than $394,000 | $591.90 |
| $500,000 or more | $750,000 or more | $394,000 or more | $628.90 |
If you are enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance), you will typically face out-of-pocket costs for your covered services.
Depending on what health care you need in 2025, these Medicare costs – such as deductibles, copays, coinsurance and more – can add up quickly.
A Medicare Supplement Insurance (Medigap) plan can help pay for some of these out-of-pocket Medicare costs, helping fill some of the “gaps” left by Original Medicare coverage.
For example, Medigap Plan G can help pay for costs including (but not limited to):
Your Part A and Part B coinsurance costs
Your Part A deductible
The costs for the first 3 pints of blood you may need for a transfusion
80% of the costs for covered emergency medical care when you travel abroad
A licensed insurance agent can help you compare the Medigap plans that may be available where you live. Call today to speak with a licensed agent and find a Medigap plan that fits your needs.
Or call 1-800-995-4219 to speak with a licensed insurance agent.
1 Social Security Administration (SSA). - https://www.ssa.gov/news/assets/materials/press/factsheets/colafacts2025.pdf
2 Social Security Administration. Cost-Of-Living Adjustments. www.ssa.gov/oact/cola/colaseries.html.
Christian Worstell is a health care and policy writer for MedicareSupplement.com. He has written hundreds of articles helping people better understand their Medicare coverage options.
Christian Worstell is a licensed insurance agent and a Senior Staff Writer for MedicareSupplement.com. He is passionate about helping people navigate the complexities of Medicare and understand their coverage options.
His work has been featured in outlets such as Vox, MSN, and The Washington Post, and he is a frequent contributor to health care and finance blogs.
Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. He currently lives in Raleigh, NC.
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