What Medicare will cost you
National average premiums for Medicare
The information on this page regarding Medicare costs was retrieved from Medicare.gov.
Each year in September the Centers for Medicare & Medicaid Services (CMS) releases the upcoming year premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the Medicare Part D income-related monthly adjustment amounts.
Generally, you pay a monthly premium for Medicare coverage and part of the costs each time you get a covered service. There’s no yearly limit on what you pay out-of-pocket, unless you have supplemental coverage, like a Medicare Supplement Insurance (Medigap) policy, or you join a Medicare Advantage Plan.
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Below are costs for Medicare benefits. While Medicare premiums are the same in many states across the US, rates can and do vary. Please call our office to speak with our experienced licensed Medicare agent for accurate rates for your circumstances.
Part A Hospital (2024 Costs)
Medicare Premiums Beneficiary Pays for Part A Monthly Premium
Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.
- $505/month for those with fewer than 30 quarters of Medicare-covered employment
- $278/month for those with 30-39 quarters of Medicare-covered employment
Beneficiary Pays for Skilled Nursing Facility Stay
- $0 for the first 20 days of each benefit period
- $204.00 per day for days 21–100 of each benefit period
- All costs for each day after day 100 of the benefit period
Beneficiary Pays for Hospital Stay
- $1,632 deductible per benefit period
- $0 for the first 60 days of each benefit period
- $408 per day for days 61–90 of each benefit period
- $816 per “lifetime reserve day” after day 90 of each benefit period (up to a maximum of 60 days over your lifetime)
Part B Medical (2024 Costs)
Medicare Premiums Beneficiary Pays for Part B Monthly Premium
Most people pay the standard Part B premium amount which is $174.70 in 2024
- If your income was more than $91,000 ($182,000 filing joint) you’ll pay $244.60
- If your income was more than $114,000 ($228,000 filing joint) you’ll pay $349.40
- If your income was more than $142,000 ($284,000 filing joint) you’ll pay $454.20
- If your income was more than $170,000 ($340,000 filing joint) you’ll pay $559
- If your income was more than $500,000 ($750,000 filing joint) you’ll pay $594
Beneficiary Pays for Part B Services
- $240.00 deductible per benefit period
- After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, outpatient mental health services, certain home health services, and durable medical equipment
Part C Medicare Advantage (2024 Costs)
Medicare Advantage plans combine Part A and B into one plan and are offered by Medicare-approved health insurance companies as an alternative option to your Original Medicare coverage. Premiums and out-of-pocket costs may vary depending on your plan, however most people pay as low as $0 to $25 in addition to your monthly Medicare Part B premium (see above). To ensure you find a plan that fits your specific healthcare needs and budget, please contact our licensed Medicare agent for professional assistance.
Part D Prescription Drugs (2024 Costs)
- Monthly Premium
For 2024 Medicare Part D Costs, most drug plans charge a monthly fee that varies by plan. You pay this in addition to the Part B premium. If you’re in a Medicare Advantage Plan (Part C) or Medicare Cost Plan with drug coverage, the monthly premium may include an amount for drug coverage.
- If your income was more than $91,000 ($182,000 filing joint) you’ll pay $12.90 + your plan premium
- If your income was more than $114,000 ($228,000 filing joint) you’ll pay $33.30+ your plan premium
- If your income was more than $142,000 ($284,000 filing joint) you’ll pay $53.80 + your plan premium
- If your income was more than $170,000 ($340,000 filing joint) you’ll pay $74.20+ your plan premium
- If your income was more than $500,000 ($750,000 filing joint) you’ll pay $81 + your plan premium
- Yearly Deductible
Deductibles vary between Medicare drug plans. Some Medicare drug plans don’t have a deductible.
- No Medicare drug plan may have a deductible more than $545 in 2024.
- Copayments & Out-of-Pocket Thresholds
Once your deductible is met, you’ll pay a coinsurance (copay) for prescription drugs. Note that the amount of your copay may change during the benefit period, if the drug price fluctuates.
- Initial coverage limit is $5,030 (plan pays 75% – you pay 25%)
- Once you and your plan pay this amount, you’ll continue to pay 25% of the cost of your prescriptions drugs until you reach your threshold
- Annual out-of-pocked threshold is $8,000
- Coverage Gap - Donut Hole
Once you and your plan have spent $5,030 on covered drugs in 2024, you’re in the coverage gap (a temporary limit on what the plan covers). Even though you’ll only pay 25% for both brand name and generic drugs at this point, almost the full price of the drug (except for what the plan pays) will count as out-of-pocket costs to help you get out of the coverage gap.
- The manufacturer pays 70% of drug costs
- The plan pays 5% of drug costs
- You pay 25% of drug costs
- The plan also pays 75% of a dispensing fee, you pay 25% of the dispensing fee
- Catastrophic Coverage
Once you reach your threshold ($8,000), you are out of the coverage gap (donut hole) and you’ll automatically get catastrophic coverage. This assures you only pay a small coinsurance amount or copayment for covered drugs for the rest of the year.
- You’ll pay 5% or a small copay (whichever is greater) of the cost of your medications for the rest of the year.
- Your plan pays the rest
- Insulin Costs
Beginning Jan. 1, 2023, all Medicare Part D and Medicare Advantage plans with prescription coverage will cap the cost of select insulin products at $35.
With this change, you’ll pay no more than $35 for a month’s supply of insulin.
Starting on July 1, people on Original Medicare who use an insulin pump will also pay no more than $35 for a month’s supply of insulin.
- Costs for Vaccines
Starting in 2023, vaccines covered under Medicare Part D will be free.
This means you pay no deductible, coinsurance or copay for vaccines — even the shingles vaccine — covered by Medicare Part D.
Request FREE Consultation
Shelly Winson is an insurance professional with more than 30 years of experience. She specializes in helping people with the important, and complicated milestone of Medicare. Transitioning to Medicare is a complex process that requires truly understanding your options and the best Medicare solutions for your specific situation.
Most people don’t consider that one illness can quickly wipe out a nest egg without the proper coverage. Shelly can help you avoid the most common mistakes, saving you money in fines and penalties, as well as excessive out-of-pocket costs.
- There is never a fee for our guidance
- We help you assess your needs and match you with the best Medicare and Supplemental plan options for your specific circumstances.
- We make sure your preferred doctors are in your plan.
Request FREE Consultation
Shelly Winson is an insurance professional with more than 30 years of experience. She specializes in helping people with the important, and complicated milestone of Medicare.
Transitioning to Medicare is a complex process that requires truly understanding your options and the best Medicare solutions for your specific situation.
Most people don’t consider that one illness can quickly wipe out a nest egg without the proper coverage. Shelly can help you avoid the most common mistakes, saving you money in fines and penalties, as well as excessive out-of-pocket costs.
- There is never a fee for our guidance
- We help you assess your needs and match you with the best Medicare and Supplemental plan options for your specific circumstances.
- We make sure your preferred doctors are in your plan.