Medicare is a federal program that provides health insurance to people over 65 and certain individuals under 65 with disabilities.
Thank you for reading this post, don't forget to subscribe!While Medicare helps to cover your health care costs, it does not pay for all your costs.
So, how much does Medicare cost?
In 2024, Medicare premiums start at $174.70 for Part B, around $18.50 for many Medicare Advantage plans, and about $48 for Part D prescription drug coverage. Medigap plans add further coverage, with premiums typically ranging from $90 to $300 monthly.
If you are eligible for Medicare, you are responsible for paying premiums and out-of-pocket costs, such as deductibles, copays, and coinsurance, for healthcare services you receive.
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Medicare Part A Costs in 2024?
Medicare Part A is part of Original Medicare and covers inpatient hospital care, surgeries, lab tests, short-term skilled nursing facilities, home health care as well as hospice care.
Part A 2024 Premiums
The good news for most Americans is that about 99% of Medicare beneficiaries are eligible for premium-free Part A coverage.
This means you do not have to pay any premiums at all to receive Part A coverage.
To be eligible for premium-free Part A coverage, you or your spouse must have worked and paid Medicare taxes for at least 10 years (or 40 quarters) before enrolling in Medicare.
| Medicare Taxes Paid | Monthly Premium |
|---|---|
| >40 quarters | $0 |
| >30 quarters | $278 |
| 0 – 29 quarters | $505 |
Part A Out-of-Pocket 2024 Costs
While premiums for Part A are free for many Americans, you will still have out-of-pocket costs that you need to cover.
Inpatient Hospital Stays
Under Original Medicare, you will be responsible for deductibles and coinsurance costs during your hospital stay.
| Part A Out of Pocket Cost | Cost |
|---|---|
| Inpatient hospital deductible | $1,632 |
| Daily coinsurance for 61st-90th Day | $408 |
| Daily coinsurance for lifetime reserve days | $816 |
When a Medicare beneficiary first enrolls in Medicare, they are allocated 60 lifetime reserve days, which do not renew once used.
Skilled Nursing Facilities (SNF)
Medicare Part A costs in 2024 will cover care delivered by SNFs on a short-term basis after a qualifying hospital stay of at least 3 days if a doctor has decided that you need daily skilled care.
Your obligations under Medicare Part A for SNF costs in 2024 include:
- Days 1–20: $0 for each benefit period
- Days 21–100: $204 coinsurance per day
- Days 101 and beyond: 100% of the costs
Medicare Part B Costs in 2024
Medicare Part B is part of Original Medicare and covers medically necessary doctor and outpatient medical services and supplies.
This includes ambulance services, durable medical equipment, hospice care, home health care and certain preventive services and screenings.
Part B 2024 Premiums
In 2024, the standard monthly premium for Medicare Part B enrollees is $174.70.
Everyone enrolled in Medicare Part B must pay the monthly premium in order to be enrolled in Part B.
Part B Premium Adjustment
If your income reported to the IRS is above a certain threshold, you may pay have to pay a higher Part B premium than the standard rate.
This is known as an Income Related Monthly Adjustment Amount (IRMAA).
Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago, as this is the most recent tax return information provided to Social Security by the IRS, to determine whether you need to pay a higher premium.
For example, Social Security would use tax returns from 2022 to determine your IRMAA in 2024.
In 2024, if your 2022 reported income was over $103,000 individually or $206,000 jointly, your Part B premium will include IRMAA and be higher than the standard Part B premium.
| Individual Filing | Joint Filing | Income-Related Monthly Adjustment Amount | Monthly Premium |
|---|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $174.70 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $69.90 | $244.60 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $174.70 | $349.40 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $454.20 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $364.30 | $559.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $594.00 |
Part B 2024 Deductible
The annual deductible for all Medicare Part B beneficiaries is $240 in 2024.
You must pay this full amount out of pocket each year before Medicare will start helping to pay for any healthcare costs.
Part B 2024 Out-of-Pocket Costs
The cost-share for Medicare Part B out-of-pocket costs is very simple. Once you have reached your Part B deductible, you pay 20% of the Medicare-approved Part B services (such as doctor services, outpatient therapy, and durable medical equipment).
Medicare Part C Costs in 2024 (Medicare Advantage)
Medicare Part C (also known as ‘Medicare Advantage’) plans are bundled “all-in-one” plans provided by private health insurance companies approved by the federal government to deliver Medicare to consumers.
These plans provide an alternate method to Original Medicare for receiving Medicare coverage.
By law, Medicare Advantage plans must provide at least the same coverage you would receive under Part A and B of Original Medicare.
Medicare Advantage plans often include Part D (Prescription Drug Coverage) and extra benefits such as vision, hearing, and dental care that Original Medicare does not cover.
Part C 2024 Premiums
If you are on Medicare Advantage (also known as Part C coverage), you must continue paying the Medicare Part B premium per month.
Depending on your coverage, you may also need to pay a premium in addition to the standard Part B premium to the private insurance company.
The estimated average monthly MA plan premium for 2024 is $18.50, but this cost may vary significantly. Some plan premiums could be $0, while others could have over $200.
66% of Medicare Advantage plans available will have $0 premium, meaning no premium is payable in addition to the standard Medicare Part B premium.
Part C 2024 Out-of-Pocket Costs
Out-of-pocket costs (such as deductibles, copays, and coinsurance) will follow the costs indicated in your plan’s policy guidelines and vary from plan to plan.
For most Medicare Advantage plans, you will likely need to pay a copayment of $0 or $20 every time you see your primary doctor ($20 – $50 for specialists).
You will also typically need to pay daily copayments for a portion of your first 5-7 days of any inpatient hospital stay.
Maximum Out-of-pocket (MOOP)
Medicare Advantage plans are required by law to limit your out-of-pocket spending.
In 2024, Medicare out-of-pocket costs are capped at a maximum of $8,850 a year for in-network services and $13,300 for both in- and out-of-network services.
This differs from Original Medicare, where there is no cap on your 20% share of medical expenses under Part B.
Learn More: How to Compare Medicare Advantage Plans
Medicare Part D Costs in 2024 (Prescription Drug Coverage)
Medicare Part D is prescription drug coverage provided by private insurance companies. If you are on Original Medicare, you can access Part D coverage by purchasing a standalone Prescription Drug Plan (PDP).
Alternatively, you can also access Part D coverage if you enroll in a Medicare Advantage (Part C) plan that bundles in prescription coverage (also known as an ‘MA-PD’ plans).
Part D 2024 Premiums
If you are on Original Medicare and purchasing a standalone PDP, Part D premiums will vary by insurer and plan.
The Kaiser Family Foundation estimates that the national average enrollment-weighted monthly PDP premium for 2024 will be $48.
If you are enrolled in an MA-PD plan, Part D coverage is bundled into your monthly Medicare Advantage premium cost (if applicable), and you will not need to purchase a separate Part D plan.
Part D 2024 Premium Adjustment
Similar to Medicare Part B, if you are a high-income earner (based on your income from 2 years ago), your Medicare Part D drug coverage cost in 2022 will be higher.
This is called the Part D Income Related Monthly Adjustment Amount (sometimes known as Part D-IRMAA).
Social Security will contact you if you must pay the Part D IRMAA.
If you must pay for the IRMAA, this amount is paid directly to Social Security (rather than your plan provider).
In 2024, the IRMAA adjustments are as follows:
| Individual Filing | Joint Filing | Income-related monthly adjustment amount |
|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $12.90 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $33.30 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $53.80 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $74.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $81.00 |
Part D 2024 Deductible
Deductibles can vary across Part D plans. However, the government sets the maximum deductible charged each calendar year.
In 2024, the maximum Part D deductible is $545.
If you have a deductible, you must pay for 100% of the costs until you reach the deductible amount before your Part D insurance kicks in and helps pay for prescriptions.
Part D 2024 Out-of-Pocket Costs
For Part D, your copay and coinsurance obligations may change depending on the four different coverage phases.
You can read more about these ‘phases’ in our guide to Medicare Part D costs.
Plans generally categorize their formularies into cost-sharing ‘tiers,’ which determine the copayment/coinsurance you will pay for the drug you are filling.
Many will have 3 to 4 tiers, with lower tiers costing less than higher tiers. For example:
- Tier 1: Generic Drugs
- Tier 2: Preferred Brand Name Drugs
- Tier 3: Non-preferred Brand Name Drugs
- Tier 4: High-cost of ‘specialty’ drugs
Learn More: How to Compare Medicare Part D Plans (Prescription Drug Coverage)
How much is Medicare Supplement in 2024 (Medigap)?
Medicare Supplement (also known as ‘Medigap’) is sold by private insurance companies and is designed to help pay for the out-of-pocket costs (or ‘gaps’) that the Original Medicare does not cover (such as your 20% coinsurance under Part B).
You cannot purchase a Medicare Supplement policy if enrolled in Medicare Advantage.
Like Medicare Advantage and Part D, your Medicare Supplement premium in 2024 will be determined by your private health insurer and will vary from plan to plan and insurer to insurer.
The premiums and out-of-pocket costs for Medicare Supplement plans will also vary depending on the type of plan you choose (there are 10 standard plans you can purchase).
Premiums for Medicare Supplement plans (Plan F, G, and N) can typically range from $90 – $300 per Medigap premiums vary by plan type and insurer, as well as other factors like age and location. The most popular Medigap plans, Plan F, G, and N, typically have monthly premiums ranging from around $90 to $300. According to recent KFF data:
- Plan G had an average monthly premium of about $164 nationally, but costs ranged from $140 to $236 depending on location, insurer, and other factors.
- Plan N offers slightly lower premiums but may require some out-of-pocket copayments for doctor and emergency room visits.
Since Medigap premiums also vary by the pricing methods insurance companies use (e.g., community-rated, issue-age-rated, or attained-age-rated), beneficiaries should compare options to find a plan that meets their healthcare needs and budget.
Learn More: How to Compare Medicare Supplement Plans
Review Coverage Annually
With updates in premiums and out-of-pocket costs each year, it’s important to review your coverage annually and explore options like Medigap to minimize unexpected expenses. Staying current on these changes ensures you’re ready for each new calendar year and fully equipped to navigate your Medicare journey.
For personalized assistance and support, consider reaching out to a licensed advisor, especially when selecting supplemental coverage.
