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How much does Medicare Parts A, B, C and D really cost?

Bonnie Vengrow
A person looking at Medicare costs on their laptop.

Medicare may pay for a portion of health care costs, but it doesn’t cover everything. How much you can expect to spend on care and services depends on several factors. These include the type of Medicare plan you have, when you sign up for it and your annual income.

The good news is you have some control over your Medicare costs. Read on to learn about how much Medicare coverage can cost. There are also some tips for keeping your expenses in check.

How the different parts of Medicare affect what you pay

Medicare has different parts. You can combine them to deliver more complete health care coverage. Depending on your choice, you may need to pay Medicare premiums, copays, coinsurance, deductibles or other costs.

How much is Medicare Part A and Part B (Original Medicare)?

Medicare Parts A and B provide coverage for essential medical care. Together, Parts A and B are called Original Medicare.

Part A covers inpatient hospital stays and some care outside of the hospital. (For instance, skilled nursing care after you leave the hospital.)

Medicare Part A is generally free. But you will need to pay a deductible before Medicare begins to cover any of your hospital costs. In 2024, the Part A deductible is $1,632. If you spend more than 60 days in the hospital, you will have coinsurance to pay.

Let’s take a closer look.

How much is the Medicare Part A premium

If you or your spouse worked and paid Medicare taxes for at least 10 years, you qualify for premium-free Part A. (Most people do.) 

If you don’t meet that requirement, you can pay a monthly premium for coverage. The amount depends on how long you’ve worked and paid Social Security taxes. Three months of work count as one “work credit.” 

In 2024, the standard Medicare Part A premium is $505 if you have fewer than 30 credits. If you have 30 to 39 credits, it’s $278.

Medicare Part A hospital inpatient deductible and coinsurance

In 2024, you pay:

  • $1,632 Medicare Part A deductible for each benefit period (A benefit period begins the day you go into the hospital. It ends when you haven’t received any care for 60 days in a row.)
  • Days 1 to 60: $0 coinsurance for each benefit period
  • Days 61 to 90: $408 coinsurance per day after day 60 of each benefit period
  • Days 91 and beyond: $816 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over the course of your lifetime)
  • Beyond lifetime reserve days: all costs

What does Medicare Part B cover?

  • Doctor visits
  • Outpatient procedures, even if they occur at a hospital
  • Lab services and other testing
  • Durable medical equipment (think wheelchairs, hospital beds and oxygen tanks)

Most people pay a monthly premium for Part B. They must meet a deductible before it begins paying for services. The standard monthly payment is $174,70 in 2024. The annual deductible for Medicare Part B is $240 in 2024.

If your income is more than a certain amount, you pay the standard premium plus an extra charge. This is called an Income-Related Monthly Adjustment Amount (IRMAA).

The Medicare Part B premium may also cost more if you enroll later than three months after your 65th birthday and you don’t have other creditable health insurance, such as through an employer.

How much is Medicare Part D?

Medicare Part D provides coverage for prescription drugs. It can offer a degree of cost protection.

Medicare Part D premium amounts vary by plan and by where you live. In 2024, the average Medicare Part D monthly premium is $55.50. The annual deductible is no more than $545. As with Part B, you may need to pay an extra monthly charge if you make more than a certain amount. It’s called the Medicare Part D IRMAA. You may also have to pay a copayment or coinsurance when you pick up your prescribed medicines. The more costly the prescription, the more you’ll pay.

Ensuring you have consistent drug coverage is key. If you go 63 or more days in a row with no Medicare drug coverage or other creditable prescription coverage, you may have to pay a penalty if you sign up for Part D later.

How much is Medicare Part C (Medicare Advantage)?

Also known as Medicare Advantage, Medicare Part C plans provide at least the same coverage as Original Medicare. But it often comes with more benefits. These may include coverage for:

  • Prescription drugs
  • Dental, vision and hearing services
  • Gym memberships
  • An allowance for over-the-counter (OTC) items

Before you can sign up for Medicare Advantage, you must enroll in Original Medicare. This means you’ll pay your Part B premium plus your Medicare Advantage plan premium. These plans also have a copay for each service. The amount varies by plan.

A closer look at the costs of Medicare Advantage plans

When choosing a Medicare Advantage plan, you have plenty of options — premiums, deductibles and copayments can vary. So will your out-of-pocket costs. But these costs are often highly competitive and may be less than what you’d pay for Original Medicare.

Another thing to consider: Medicare Advantage plans limit how much you’ll spend on out of your own pocket each year. Original Medicare has no such limit. This Medicare Advantage maximum out-of-pocket (MOOP) limit means you will never pay more than a certain amount every year for your health care, if you use services and providers in your plan. In 2024, the maximum Medicare Advantage out-of-pocket limit is $8,850 for in-network services and $13,300 for in-network and out-of-network services combined. But Medicare Advantage plan members often pay less than that, depending on the plan.

Your MOOP includes deductibles, copayments and coinsurance costs. But it does not include premiums and Part D cost sharing.

Original Medicare vs. Medicare Advantage plans costs

The costs for each type of coverage depend on your health needs and the services you use. When looking at plans, crunch the numbers for some different scenarios, such as doctor visits, a hospital stay and yearly medicine costs. The results can help you decide.

Medicare Advantage plans, for example, require a copay for every doctor's visit or medical service. Original Medicare charges a 20 percent coinsurance for most doctor visits and services. That means the plan only covers 80 percent of approved expenses. You must pay the other 20 percent.

To learn more about comparing costs of plans, go to “Which Medicare plan will save you the most money? It’s not always what you think."

No matter which type you choose, Medicare can help you care for your overall health. It may not be completely free, but your Medicare coverage will be an essential way to pay for your health care as you age. In fact, it may be the best present you get for your 65th birthday.

Need help?

Call us at 1-833-329-0413 

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