Summary
A report from the Senate Joint Economic Committee warns that Medicare Part B premiums might nearly double over the next decade. Rising program costs and overpayments to Medicare Advantage plans are the main reasons behind the expected increase in premiums.
Key Facts
- Medicare Part B premiums may rise from about $2,200 per year in 2025 to $4,500 by 2035.
- The increase is due to rising spending and overpayments to Medicare Advantage insurers.
- Medicare Advantage overpayments added more than $200 per enrollee to Part B premiums in 2025.
- Premiums cover 25% of Medicare Part B costs, so any spending increase raises premiums.
- By 2035, overpayments could add approximately $450 to the annual premium.
- Medicare Part B premiums are usually deducted from Social Security benefits, reducing net monthly checks for seniors.
