How much does Medicare cost? (2024 Coverage Breakdown)
Medicare costs vary by the plan you pick. Original Medicare (Parts A and B) has standardized premiums, with Part A often being free and Part B costing $174/month. Medicare Advantage and Part D prescription plans have varying costs. Medicare Savings Programs and Medigap plans can help reduce monthly rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
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UPDATED: Jun 27, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jun 27, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
- Medicare Part A is free for most beneficiaries
- Medicare Part B premiums cost $174/mo
- Medicare Part C costs vary by plan and company
How much does Medicare cost? That depends on the kind of plan you choose. Original Medicare costs are typically the same for everyone, but Medicare Advantage plans vary in price based on where you live and the company you shop with.
When it comes to Original Medicare, Part A premiums are usually free. Most people are only responsible for Medicare Part B premiums, which cost $174/mo for all beneficiaries. Even if you’re comparing Medicare Advantage vs. Original Medicare, you still have to pay Part B premiums with each plan.
Each type of Medicare plan comes with different premiums, deductibles, and out-of-pocket maximums. Start comparing Medicare costs below and enter your ZIP code to find affordable Medicare coverage near you.
Breaking Down Medicare Costs
How much Medicare costs per month depends on the type of plan you buy. Original Medicare Parts A and B cover hospital and medical costs and come with set premiums everyone pays.
Since Medicare Part A is hospital insurance, deductibles reset after every stay. This means you pay $1,632 every time you stay in a hospital or skilled nursing facility before Medicare pays.
Medicare Plan Monthly Premium Deductible Out-of-Pocket Max
Part A $0-$505 $1,632 None
Part B $174 $240 None
Part C Varies Varies Varies
Part D $34 $0-$545 $2,000
Medigap $35-$488 Varies Varies
The following sections explain each type of Medicare premium and deductible in detail.
What You Pay for Medicare Part A
If you qualify for premium-free Part A, your premium is $0/mo. However, if you or your spouse didn’t work or retired early, you could pay either $278 or $505 based on how much Medicare taxes you paid.
Learn if you’re eligible for Medicare.
What You Pay for Medicare Part B
Medicare Part B premiums are the same for everyone unless you earn more than $103,000 annually. Premiums increase by about $70/mo for every $20,000-$30,000 more you earn. Everyone has the same $240 deductible, which you must pay upfront before Part B pays for any coverage.
Even if you meet the deductible, Part B only covers 80% of your medical costs. You are responsible for paying the remaining 20% plus premiums or copayments.
What You Pay for Medicare Part D
Medicare Part D costs are based on income. Beneficiaries who filed less than $103,000 on their tax return may not have to pay any extra premiums for prescription coverage. The average is around $34/mo, but you could pay more or less depending on the plan you choose and the types of drugs you need.
Thanks to a new prescription drug law, many people qualify for additional savings on their Medicare drug coverage (Part D) costs. Don’t wait – see if you qualify for Extra Help today at https://t.co/6Xe02cDHmd. pic.twitter.com/hoWhTnHyVd
— Medicare.gov (@MedicareGov) June 21, 2024
Unlike Parts A and B, Medicare Part D does come with an out-of-pocket maximum. Starting in 2025, Part D plans cap at $2,000. After you reach this amount, the policy covers 100% of your prescriptions for the rest of the year.
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Comparing Medicare Advantage Costs
How much does Medicare cost? Medicare Advantage (Part C) is sold by private insurance companies, so premiums and deductibles will vary by company and plan. Most Medicare Advantage plans include Part D, combining all three Original Medicare plans into one convenient monthly premium.
Compare Medicare Advantage plans near you to get the best rates.
Most people choose Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) plans, which average around $20/mo in most states.
Always compare plans from multiple companies to ensure you’re getting the best coverage at the best price.
Private Fee-For-Service (PFFS) plans do not have any premiums or deductibles beyond the Part A and Part B costs. This type of plan explicitly lists the cost of each medical procedure, doctor’s visit, hospital stay, etc. You and your provider agree on who will pay for what before you sign the policy.
How to Save Money on Medicare
Don’t stress if you can’t afford your Medicare costs. The federal and state governments offer an array of programs and supplemental insurance plans to help pay for coverage.
Medicare Savings Programs (MSP)
Medicare Savings Programs (MSPs) cover Original Medicare premiums, deductibles, coinsurance, and copayments through your state’s Medicaid program. Each plan comes with different income requirements and provides different types of assistance:
- Qualified Medicare Beneficiary (QMB) Program: Covers Part A and Part B costs but not Part D copayments.
- Specified Low-Income Medicare Beneficiary (SLMB) Program: Covers Part B premiums and some Part D costs.
- Qualifying Individual (QI) Program: Must apply every year to cover Part B premiums.
- Qualified Disabled Working Individual (QDWI) Program: Covers Part A premiums for those who meet income and disability requirements.
You don’t need to be enrolled in Medicaid to apply, but you can receive additional benefits with certain MSPs.
Read More: What is Medicaid?
Medicare Supplement Insurance (Medigap)
Supplemental insurance, also known as Medigap, will help finance what your health insurance won’t cover by paying a portion of your doctor and hospital bills. Plans also cover deductibles, copays, and coinsurance.
Medigap plans are not stand-alone policies and are therefore limited in the amount of coverage they can provide. Medicare Advantage plans offer similar benefits at a better price.
Use our Medigap guide to compare insurance plans and find the best fit for you.
The Bottom Line: How much does Medicare cost?
How much is Medicare? Here is a breakdown of how much Medicare costs:
- Medicare Part A: Premium-free for many but costs up to $505/mo if you don’t meet the necessary work requirements.
- Medicare Part B: Premiums start at $174/mo for most beneficiaries, with additional costs for high earners.
- Medicare Advantage (Part C): Provided by private insurers and offers more variability in pricing based on location and the insurance company.
- Medicare Part D: Costs are income-dependent and include an out-of-pocket maximum starting in 2025.
Original Medicare (Parts A and B) has standardized premiums, deductibles, and out-of-pocket costs, while Medicare Advantage varies by state and company. Compare Medicare Advantage vs. Original Medicare to learn more.
Since Medicare costs vary, comparing health plans is essential to finding the most cost-effective coverage. Certain supplemental and savings plans can also cover some of these costs for you. Enter your ZIP code below to start shopping for affordable Medicare plans today.
Frequently Asked Questions
What is the average monthly cost for Medicare?
Compare how much Medicare costs. If you choose Original Medicare (Parts A and B), you will pay at least $174/mo for Medicare Part B. Medicare Part A is usually premium-free.
How much does Medicare Part B cost per month?
The monthly Medicare Part B premium is $174/mo while the policy deductible is $240. However, Part B only covers 80% of the total price after you meet your deductible. You are responsible for the remaining 20%.
Does everyone pay $170 for Medicare?
All beneficiaries pay $174/mo for Medicare Part B premiums unless they qualify for Medigap or a Medicare Savings Program (MSP).
How much a month is Medicare Part C (Medicare Advantage)?
Medicare Part C costs vary depending on the plan and company you pick. In general, monthly rates average at $20/mo. Enter your ZIP code to start comparing Medicare Advantage costs near you.
How much do most seniors pay for Medicare?
Most seniors qualify for premium-free Part A insurance, meaning they only pay $174/mo for Part B. Most seniors who choose Medicare Advantage plans pay around $20/mo plus their Part B premiums.
Can you switch back and forth between Original Medicare and Medicare Advantage?
You can switch Medicare plans during the Annual Enrollment Period from October 15th to December 7th. Find out when to sign up for Medicare.
What happens if you can’t afford to pay for Medicare?
If you can’t afford your monthly Medicare payments, use our Medigap guide to find affordable plans in your area. This type of supplemental insurance can help cover Original Medicare premiums and deductibles. If you meet the income requirements, you can also apply for various Medicare Savings Programs.
How much income is too much for Medicare?
Medicare costs start to go up if you file more than $103,000 in taxes.
What happens to Medicare if your income is too high?
You will always have access to Medicare regardless of income, but your out-of-pocket costs will increase if you make more than $103,000/yr.
Is Medicare Advantage or Original Medicare with Medigap cheaper?
The cost of Medicare depends on how much coverage you need. However, more than 75% of Medicare beneficiaries are enrolled in Advantage plans, which speaks to Part C affordability and flexibility. Learn more about the differences between Medicare Advantage vs. Original Medicare.
Enter your zip code below to view companies that have cheap insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.