Americans planning for retirement tend to have some key concerns regarding ensuring a financially secure future that fits their notions of a desired lifestyle.
Personal finance bestselling author Suze Orman offers some thoughts about these challenges, specifically focusing on some near-term health care costs retirees should know about for Medicare in 2025.
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Among other retirement concerns many people face is the decision about when to claim Social Security. Americans can begin collecting those benefits at age 62 — but if they wait until they are older than that, their monthly payments will be larger.
People in their retirement years also often worry about outliving their savings. The good news is that life expectancies are increasing, but that fact carries with it the added necessity of planning financially for a longer retirement.
Other economic and financial considerations affect retirees’ wealth, such as inflation (which can have a negative impact on one’s purchasing power) and market volatility (which subjects one’s investments to swings in stock values that are beyond a person’s control).
The important retirement concern Orman focuses her attention on for now is the cost of Medicare. Changes are coming for 2025 and the personal finance personality takes some time to explain a few of them.
A retired man is seen looking happy with his grandson’s arms around his shoulders. Personal finance author Suze Orman explains various Medicare costs for 2025.
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Suze Orman discusses Medicare costs for 2025
Orman clarifies the fact that Medicare pays for a most retirees’ health care costs, but some are paid for by enrollees — and those amounts change every year.
It’s those crucial out-of-pocket expenses that Orman warns Americans to pay close attention to, even if they are not yet 65 years of age (the age at which one is able to enroll in Medicare).
“Understanding all the costs Medicare requires enrollees to cover out-of-pocket can be an eye-opener that can motivate you to save up more in your retirement accounts, calibrate your spending, or even consider post-retirement opportunities to earn some income,” Orman wrote.
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Orman explains that Medicare Part B — which covers doctor visits and tests — requires a monthly premium.
For those who are already receiving Social Security payments, the cost of the premium is automatically deducted from those checks. Those not yet taking Social Security should arrange payments from their bank accounts or credit cards.
The Medicare Part B premium for 2025 is $185. In 2024 it was $174.70.
People with incomes above $106,000 (and married people making $212,000 jointly) will have premiums that are higher than that.
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Suze Orman explains Medicare deductibles and prescription drug costs
Deductibles are also out-of-pocket expenses for which Medicare enrollees are responsible.
For Part B, the deductible is $257 in 2025.
For Medicare Part A (in-hospital coverage) there is no premium involved, provided the enrollee has worked for at least 10 years and has paid Social Security and Medicare taxes during that time.
However, there is a Part A deductible for enrollees who are hospitalized. In 2025, that amount is $1,676 for the first 60 days. If a person is hospitalized more than 60 days and up to 90 days, a daily co-insurance amount of $419 is required.
After 90 days (of each benefit period), the cost per day is $838 in 2025. Those are lifetime reserve days, of which enrollees get up to 60 days over their lifetimes.
After one uses all of their lifetime reserve days, they are required to pay all costs.
Original Medicare enrollees also need to purchase a separate Part D coverage plan for prescription drug costs. In 2025, the average monthly premium for Part D is about $40.
“The good news for everyone,” Orman wrote, “is that starting in 2025, your maximum out-of-pocket cost for covered prescription drugs is capped at $2,000.”
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