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How much does Medicare cost?

The cost of Medicare per month ranges from $0 to hundreds of dollars
Lindsay Malzone writer headshot
By | Updated on Apr. 7, 2024 Medically reviewed by Scott Dershowitz, LMSW, CMC
Perplexed man looking at Medicare sign with notebook and stethocope: How much does Medicare cost?

Key takeaways

  • Most Americans receive premium-free Medicare Part A and pay for Medicare Part B, with costs varying based on income, work history, Medicare coverage type, and the insurance company chosen.

  • Medicare Part A covers hospital and inpatient services, with costs including premiums (for those with fewer work credits), deductibles, and coinsurance, whereas Medicare Part B covers outpatient services with a standard monthly premium, deductible, and coinsurance.

  • Medicare Part C (Medicare Advantage) offers a combined plan by private companies, often including additional benefits and prescription drug coverage, with costs varying by plan, including possible monthly premiums, deductibles, and out-of-pocket limits.

  • Medicare Part D covers prescription drugs, with costs that may include premiums, deductibles, copayments, and coinsurance, affected by income levels, while Medicare Supplement plans help cover gaps in Original Medicare, with costs varying by plan and provider.

In this article:

Medicare is the United States Federal health insurance plan for individuals 65 and older or people younger than 65 with specific health needs. However, some may be surprised to learn that Medicare doesn’t fully cover all healthcare expenses.

People on Medicare could pay a premium of $0 to hundreds of dollars per month. The cost of Medicare is affected by how much money you reported on taxes, how long you worked, which Medicare coverage you enroll with, the company you choose to use, and whether you qualify for a low-income subsidy or Medicare Savings Program.

How much does Medicare cost? 

Most people who enroll in Original Medicare will receive premium-free Part A and pay the standard monthly premium for Medicare Part B, which is $174.70 per month in 2024. 

People who enroll in Medicare Advantage pay an average of $18.50 per month in 2024, but some plans have a $0 premium. 

For Part D coverage, the 2024 base premium is $34.70 per month, but some plans have a $0 premium.

Part A cost

Insurance for inpatient hospital insurance and services such as hospital stays, skilled nursing facilities, and hospice care are covered under Medicare Part A.

Costs associated with Part A include the Medicare Part A deductible, copays, coinsurance, and for people who didn’t earn the necessary work credits, a Part A premium.

The premium amount for Medicare Part A will depend on how many quarters a beneficiary or spouse paid Medicare taxes. In addition to premiums, there are also cost share amounts, including deductibles, coinsurance, copayments, and excess charges.

The 2024 costs for Medicare Part A are below:

  • Part A monthly premium
    • $0 if the beneficiary or spouse worked at least 40 quarters
    • $278 if the beneficiary or spouse worked 30-39 quarters
    • $505 If the beneficiary or spouse worked less than 30 quarters
  • Part A deductible
    • $1,632 – reoccurring and paid each benefit period
    • A benefit period begins the first day you are admitted for inpatient care and ends when you have not had any inpatient care for 60 days in a row
  • Part A coinsurance
    • Hospital
      • Days 61-90 $408 per day
      • Days 91-150 $816 per day while using your 60 lifetime reserve days
      • After day 150: You pay all costs unless you have other insurance
    • Skilled nursing facility 
      • Days 1-20: $0 copayment
      • Days 21-100: $204

Part B cost 

Medicare Part B medical insurance covers outpatient services, home health care, and durable medical equipment.

Costs associated with Medicare Part B include a monthly Part B premium, annual deductible, coinsurance, and excess charges.

The 2024 costs for Medicare Part B are below:

  • Part B standard premium
    • $174.70 (monthly)
  • Part B deductible
    • $240 (annual)
  • Part B coinsurance
    • 20% of the Medicare-approved amount
  • Part B excess charges
    • Up to 15% more than the Medicare-approved amount

Medicare beneficiaries with a higher income level could be responsible for a higher Medicare Part B premium amount. This additional amount is called an Income Related Monthly Adjustment Amount (IRMAA).

Part C cost 

Medicare Part C is better known as Medicare Advantage. These plans combine the benefits of Original Medicare into one comprehensive plan. Private Insurance companies run these plans with oversight from the Centers for Medicare & Medicaid Services (CMS).

These plans not only include the same covered services from Medicare Parts A and B but often include additional benefits not included under Original Medicare coverage. Many Part C plans also have Medicare prescription drug coverage.

Since private insurance companies administer these plans, they can set their plan’s cost-sharing amounts. However, they must limit the annual medical out-of-pocket costs a Medicare beneficiary must pay. 

These plans cost, on average, about $18.50 per month, but many areas have Medicare Advantage plans available with a $0 premium.

Out-of-pocket costs included in Medicare Advantage plans will vary depending on the service area and the plan you choose. 

Part C costs may include:

  • Monthly premium
  • Medical portion deductible
  • Prescription portion deductible
  • Copayments
  • Coinsurance

Part D cost

Medicare Part D covers prescription drugs. Stand-alone Part D plans are only available to consumers with Original Medicare. 

Similar to Medicare Part C, these plans are run by private insurance companies contracted with Medicare. The premiums are also affected by IRMAA, meaning that beneficiaries with higher incomes will likely pay higher premiums.

While these plans are optional, enrollment in Medicare prescription drug coverage is recommended. If a beneficiary forgoes Medicare prescription drug coverage and does not have creditable coverage, they may be assessed a late-enrollment penalty for each eligible month they were not previously enrolled.

Costs associated with Medicare Part D will vary depending on the beneficiary’s location and plan. The prescription drug costs will vary as well. The most important thing is to enroll in a plan that covers your prescription drugs, and that has as few restrictions as possible

Part D costs may include:

In 2024, the Part D drug plan base monthly premium is $34.70.

Cost of Medicare Supplement (Medigaps)

Medicare Supplements help fill the cost gaps from Original Medicare. These private plans are also called Medigaps. 

These supplemental insurance plans include a separate plan premium and can vary depending on where you live, the plan you choose, your age, and the insurance company you choose to enroll.

These plans are standardized, meaning the coverage within a category of Medigap is identical regardless of the company or where you live. This standardization makes it easy to compare programs.

Since the coverage is the same, beneficiaries essentially only consider the quality of the insurance company and the plan premium.

While there are 10 Medigap plan categories to select from, not all are available in all areas or offered by all companies. Most Medicare beneficiaries choose to enroll in Plan F, Plan G, or Plan N. These are the most comprehensive and popular Medigap options.

These Medigap plans have different coverage levels depending on your chosen plan. Below are some of the expenses that may be covered by Medigap plans: 

  • Part A deductible
  • Part B deductible
  • Part A copayments
  • Part B coinsurance
  • Part B excess charges
  • Foreign emergency travel benefit

Not all plans cover all benefits, and a local State Health Insurance Assistance Program (SHIP) can help to determine which plan is suitable for your individual needs. The cost of Medigap can depend on various factors and may be affected by your age, depending on the plan.

For example, even though these plans have the same coverage, the cost can vary based on several factors. These include your age, location, tobacco use, health conditions, plan letter, and the insurance company. Below are recent national average costs for the top three Medicare Supplement plans.

  • Plan F: $173
  • Plan G: $135
  • Plan N: $110

Remember, the prices shown are the average cost nationwide. Some areas may have lower costs, while others may be more expensive.

Cost of Medicare FAQs

Is Medicare Part A free at age 65?

Medicare Part A is premium-free for most people. The premium amount is determined by how many years you paid into Medicare taxes. To receive Part A premium-free, you or your spouse must have worked a minimum of 10 years.

How much does Medicare cost each month? 

Most Medicare beneficiaries pay the standard Medicare Part B premium, which is $174.70 in 2024. Some higher-income beneficiaries will have to pay more based on their IRMAA.

Does everyone have to pay for Medicare?

Almost everyone will have to pay some form of Medicare cost-sharing. However, there are some exceptions. Low-income Medicare beneficiaries may qualify for a Medicare Savings Program (MSP) to help pay their Part B premiums, for example.

How can I reduce my Medicare premiums?

To reduce how much you pay for your Medicare premiums, you must have an income low enough to qualify for an MSP to help pay your premiums. The other way to lower your Part B premium is to enroll in a Medicare Advantage plan with a giveback benefit. These plans aren’t available in all areas.

How to save money on Medicare

There are a few ways that beneficiaries can save money on Medicare. Most programs are based on income. 

  1. The low-income subsidy or Extra Help program helps low-income beneficiaries with their prescription drug costs, premiums, copays, and deductibles. 
  2. If you qualify for full Medicaid, you’ll have your Part B premiums and your Medicare cost share paid by the state. MSPs also may help with Medicare cost sharing.
  3. Another way to save money is by reducing drug costs with a free SingleCare discount card. With a SingleCare savings card, you may save up to 80% on the cost of your prescription.