Are Medicare hospital costs increasing in 2025?

No one wants to end up in the hospital, but if you’re enrolled in Medicare and require inpatient care in 2025, you’ll want to know what costs to expect. Most people get premium-free Part A (hospital insurance) due to taxes paid while working for forty quarters, but you’ll still have other cost-sharing responsibilities, such as a deductible and coinsurance. 

If you do not qualify for Part A premium-free, you may be able to purchase coverage. These premium costs are going up in 2025. If you’ve worked less than 30 quarters, you will pay a premium of $518 per month. If you worked less than 40 quarters, but more than 30, you’ll pay $285 per month.

What does Medicare Part A cover?

Part A helps cover the costs of inpatient care in a hospital or skilled nursing facility, home health  care, and hospice services. Hopefully, you won’t be formally admitted into the hospital, or need care covered by Part A, but if you do, you’ll be required to pay a deductible before your benefits kick in. 

What changes are coming to the Part A deductible in 2025?

In 2025, you’ll have to pay an inpatient hospital deductible before your Part A benefits begin. In 2025, the deductible is $1,676, a $44 increase from 2024. Once this amount is paid, you will have $0 coinsurance for the first 60 days you are hospitalized. 

Coinsurance costs for inpatient hospital care under Part A

As mentioned, you will not have any coinsurance for the first 60 days of a qualifying inpatient stay in a hospital. If you need to stay longer, from day 61 through day 90, you’ll have to pay $419 per day. This is an increase from $408 in 2024. After being hospitalized for an injury or illness, some patients need additional short term care or rehabilitation in a skilled nursing facility (SNF) before returning home. 

How much will care in a skilled nursing facility (SNF) cost in 2025?

Skilled nursing care can provide a wide range of services for patients who need skilled nursing or therapy to treat or manage a condition. It may include a semi-private room, meals, and services based on your needs. Physical therapy, occupational and speech therapy, medications, and ambulance services may be included in your SNF care.

If you receive care in a skilled nursing facility, you will have $0 coinsurance for the first 20 days. From day 21 through day 100 in a skilled nursing facility, you’ll pay $209.50 per day, up from $204. 

If you are enrolled in a Medicare Advantage plan, you will have at least the same benefits as Original Medicare Part A and Part B, but many plans include additional coverage. If you have specific questions regarding your costs, contact your plan directly.