Overview
- The Joint Economic Committee estimates the 2025 premium increase equals about $212 per beneficiary, driven by higher spending in Medicare Advantage relative to traditional Medicare.
- Because Part B premiums are national and set to cover roughly one‑quarter of costs, increased Medicare Advantage spending raises premiums for all enrollees, often through deductions from Social Security checks.
- Traditional Medicare beneficiaries covered about $6 billion of the 2025 increase, with individuals bearing 84.9% of the added costs, states 9.1% and federal taxpayers 6%.
- Relying on MedPAC estimates that Medicare Advantage costs exceed traditional Medicare, the committee tallied a cumulative $82 billion added to premiums over the past decade.
- The report projects per‑person premiums could approach $5,000 by 2035 with about $450 attributable to these differentials if trends persist, a premise disputed by the insurer‑backed Better Medicare Alliance.