Lesson 2: Medicare Part B

Medicare Part B is essentially your medical insurance. It covers the medical expenses that Medicare Part A doesn't cover, like outpatient care, doctor's visits, and some preventative services like exams, lab tests, and screenings. 

When you first enroll into Medicare at age 65, Part B is optional. If you don't sign up for Part B when you are first eligible, you may be required to pay a late enrollment fee.

You pay a premium each month for Part B. The standard Part B premium amount in 2025 is $185. Your Part B premium will be automatically deducted from your benefit payment if you get benefits from one of these:

• Social Security
• Railroad Retirement Board
• Office of Personnel Management

If you dont get these benefit payments, you'll get a bill.

The Part B deductible for 2025 is $257 per year. After your deductible is met, you typically pay a 20% coinsurance of the Medicare-approved amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and durable medical equipment (dme).

Most people will pay the standard Part B premium amount, but, if your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago.

For a complete breakdown of the 2025 IRMAA premiums, download the informational brochure below.