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How Much Does Medicare Cost in 2024?

How much does Medicare cost?  This article provides a comprehensive overview of the what your Medicare coverage will cost you in 2024.

7 mins read
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Medicare is a federal program that provides health insurance to those over the age of 65, as well as certain individuals under 65 with disabilities.

While Medicare helps to cover your health care costs, it does not pay for all your costs.

So how much does Medicare cost?

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 that you receive.

In this article, you’ll learn about the most up to date Medicare costs for 2024.

How much is Medicare Part A 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 in order to receive Part A coverage.

In order to be eligible for premium-free Part A coverage you, or your spouse, must have worked and paid Medicare taxes for a minimum of 10 years (or 40 quarters) before enrolling in Medicare.

Medicare Taxes PaidMonthly Premium
>40 quarters$0
>30 quarters$278
0 – 29 quarters$505
Part A Premium

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 CostCost
Inpatient hospital deductible$1,632
Daily coinsurance for 61st-90th Day$408
Daily coinsurance for lifetime reserve days$816
Part A: Out of Pocket

Every Medicare beneficiary is allocated 60 days of lifetime reserve days when they first enroll in Medicare and these days do not renew once used.

Skilled Nursing Facilities (SNF)

Medicare Part A cost in 2024 will cover care delivered by SNFs on a short-term basis after a qualifying hospital stay of at least 3 days of hospitalization 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

How much is Medicare Part B 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 will be higher than the standard Part B premium.

Individual FilingJoint FilingIncome-Related Monthly Adjustment AmountMonthly Premium
Less than or equal to $103,000Less than or equal to $206,000$0.00$174.70
Greater than $103,000 and less than or equal to $129,000Greater 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 $161,000Greater 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 $193,000Greater than $322,000 and less than or equal to $386,000$279.50$454.20
Greater than $193,000 and less than $500,000Greater than $386,000 and less than $750,000$364.30$559.00
Greater than or equal to $500,000Greater than or equal to $750,000$419.30$594.00
Part B Income-Related Monthly Adjustment Amount (IRMAA)

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).

How much is Medicare Part C in 2024 (Medicare Advantage)?

Medicare Part C (also known as ‘Medicare Advantage’) plans are a bundled “all-in-one” plan provided by private health insurance companies that are approved by the federal government organization 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 as you would receive from under Part A and B of Original Medicare.

Medicare Advantage plans often also include Part D (Prescription Drug Coverage) as well as extra benefits such as vision, hearing, 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 are required to continue paying the Medicare Part B premium per month.

You may also need to pay a premium on top of the standard Part B premium to the private insurance company, depending on the coverage you choose.

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 premiums 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 costs) will follow the costs that are indicated in your plan’s policy guidelines and will 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 is different from Original Medicare, where there is no cap on your 20% share of medical expenses under Part B.

How much is Medicare Part D 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 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 on 2022, will be higher.

This called the Part D Income Related Monthly Adjustment Amount (sometimes known as Part D-IRMAA).

Social Security will contact you if you have to pay the Part D IRMAA.

If you have to 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 FilingJoint FilingIncome-related monthly adjustment amount
Less than or equal to $103,000Less than or equal to $206,000$0.00
Greater than $103,000 and less than or equal to $129,000Greater than $206,000 and less than or equal to $258,000$12.90
Greater than $129,000 and less than or equal to $161,000Greater than $258,000 and less than or equal to $322,000$33.30
Greater than $161,000 and less than or equal to $193,000Greater than $322,000 and less than or equal to $386,000$53.80
Greater than $193,000 and less than $500,000Greater than $386,000 and less than $750,000$74.20
Greater than or equal to $500,000Greater than or equal to $750,000$81.00
Part D Income-Related Monthly Adjustment Amount (IRMAA)

Part D 2024 Deductible

Deductibles can vary across Part D plans, however, the government sets the maximum deductible chargeable each calendar year.

In 2024, the maximum Part D deductible is $545.

If you have a deductible, you must pay for 100% of 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 ‘phases’ of coverage.

You can read more about these ‘phases’ in our guide to Medicare Part D costs.

Plans will generally categorize their formularies into cost-sharing ‘tiers’ which will determine the copayment/coinsurance you will make 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

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 you are enrolled in Medicare Advantage.

Similar to Medicare Advantage and Part D, your Medicare Supplement premium 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 month.

For more information on how Medicare Supplement plans work read our comprehensive guide to Medicare Supplement.

Final Words on Medicare 2024 Costs

If you are about to enroll in Medicare, it’s important to know the costs of Medicare so you can make an informed decision on what type of Medicare coverage you want.

Costs will also change year-to-year, so it’s important to always make sure you know what your Medicare costs are prior to each new calendar year starting.

Richard Chan

Richard is the Founder of CoverRight and based in New York. He is passionate about empowering consumers to take control of their health and finances. Prior to starting CoverRight, Richard had extensive experience working in financial services with over 8 years' experience in consumer lending and investment banking.

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