Social Security and Medicare News in Focus

Keeping you informed today...helping you plan for tomorrow.

Keeping you informed today...helping you plan for tomorrow.

2025 Social Security and Medicare Figures compared to the 2024 Figures

On October 10, 2024, the Social Security Administration "SSA" announced all the 2025 figures. The Centers for Medicare and Medicaid Services (CMS), an agency under the Department of Health and Human Services will announce the 2025 Medicare premiums and deductibles soon. The table below is a summary of the new 2025 Social Security and Medicare figures compared to 2024. The last four 2025 Medicare Part D figures at the end of the table were released on April 1, 2024.

The cost-of-living adjustment (COLA) for 2025 is 2.5%. In 2025, the full retirement age (FRA) is 66 and 10 months (was 66 and 8 months in 2024). Some of the following Social Security program figures relate to when a person attains FRA.

Social Security
2024
2025
Cost-of-living Adjustment (COLA) for December (payable in January)
3.2% (12/23)
2.5% (12/24)
FICA tax rate
 
Social Security for employees and employers
6.20%
6.20%
 
Medicare (Hospital Insurance) An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). The employer does not pay this additional percentage.
1.45%
1.45%
Maximum Social Security earnings for tax contributions and benefits
$168,600
$176,100
Medicare taxable earnings
no limit
no limit
Earnings required to earn one credit (maximum of four credits per year)
$1,730
$1,810
Retirement Earnings Test exempt amounts
 
Under full retirement age (FRA) throughout 2025
$22,320
$23,400
 
FRA in 2025 (period before the month FRA is attained)
$59,520
$62,160
 
FRA and over
no limit
no limit
Primary Insurance Amount (PIA) formula – is the basic benefit formula used to calculate a person’s benefit and is applied to their average indexed monthly earnings (AIME). For people attaining age 62 or younger in each year, the formula as follows:
 
90% of the first $ of AIME, plus
$1,174
$1,226
 
32% of the next $ of AIME, plus
$5,904
$6,165
 
15% of the remaining AIME in excess of
$7,078
$7,391
National Average Wage Index
$63,795.13
$66,621.80

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

To order either booklet, you can also visit www.imercer.com/guide and www.imercer.com/medicare.

Medicare
2024
2025
Part A (Hospital Insurance) voluntary monthly premium if not eligible for premium-free Part A (an estimated 600,000 people pay this rate)
$505
Coming soon
Part A reduced monthly premium for persons with 30-39 credits
$278
 
Part B (Medical Insurance) standard monthly premium for most current, new, and high-income Medicare beneficiaries, and people whose Medicare premium is paid by Medicaid.
$174.70
 
High-income Part B (Medical Insurance) standard monthly premium*
File an Individual Tax Return
File a Joint Tax Return
0 to $103,000 annual income
0 to $206,000 annual income
$174.70
 
$103,001 to $129,000
$206,001 to $258,000
$244.60
 
$129,001 to $161,000
$258,001 to $322,000
$349.40
 
$161,001 to $193,000
$322,001 to $386,000
$454.20
 
$193,001 to $499,999
$386,001 to $749,999
$559.00
 
$500,000 or more
$750,000 or more
$594.00
 

*Income brackets for beneficiaries based on their 2023 federal income tax return filing status and adjusted gross income in 2025 (2022 returns for 2024).

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

To order either booklet, you can also visit www.imercer.com/guide and www.imercer.com/medicare.

Original Medicare Plan
2024
2025
Part A inpatient deductible per benefit period
$1,632
Coming soon
Part A daily coinsurance 61st through 90th days
$408
 
Part A daily coinsurance for up to 60 "lifetime reserve" days
$816
 
Part A daily coinsurance 21st through 100th days in a skilled nursing facility
$204
 
Part B annual deductible
$240
 
Part D (Prescription Drug Coverage) monthly premium paid to Part D plan Income-related adjustment will be paid to Medicare as follows*:
About $34.50
 
File an Individual Tax Return
File a Joint Tax Return
0 to $103,000 annual income
0 to $206,000 annual income
Add $0
 
$103,001 to $129,000
$206,001 to $258,000
Add $12.90
 
$129,001 to $161,000
$258,001 to $322,000
Add $33.30
 
$161,001 to $193,000
$322,001 to $386,000
Add $53.80
 
$193,001 to $499,999
$386,001 to $749,999
Add $74.20
 
$500,000 or more
$750,000 or more
Add $81.00
 

*Income brackets for beneficiaries based on their 2023 federal income tax return filing status and adjusted gross income in 2025 (2022 returns for 2024).

Part D deductible
$545
$590
Part D initial benefit limit
$5,030
Not applicable
Part D catastrophic threshold
$8,000
$2,000
Part D minimum cost-sharing for catastrophic coverage
 
Generic/Preferred:
$4.50
$4.90
 
Other:
$11.20
$12.15

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

To order either booklet, you can also visit www.imercer.com/guide and www.imercer.com/medicare.