How much does Medicare cost? (2024 Coverage Breakdown)

How much does Medicare cost? That depends on the plan you choose. Original Medicare costs are typically the same for everyone, but Medicare Advantage plans vary in price based on company and where you live.

How much does Medicare cost per month? 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/month. 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 does Medicare cost at age 65? 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. Learn if you’re eligible for Medicare.

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 Part B only covers 80% of costs, so you are responsible for the remaining amount plus your monthly premiums. The following sections explain each type of Medicare premium and deductible in detail.

What You Pay for Medicare Part A

Is Medicare Part A free? 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.

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. Learn more at Medicare.gov.

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

How much does Medicare Part D cost? Medicare Part D costs are based on income. 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. 

Beneficiaries who filed less than $103,000 on their tax return may not have to pay any extra premiums for prescription coverage. 

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 people choose Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) plans, which average around $20/mo in most states.

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.

How to Save Money on Medicare

Is Medicare free at age 65? Medicare Part A is free if you paid Medicare taxes, but you are still responsible for deductibles and copays. You also have out-of-pocket costs to pay for Medicare Parts B, C, and D.

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.

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.

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. Just be aware that you cannot buy Medigap if you choose a Medicare Advantage plan.

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 tax 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 prices vary between $0-$200/month based on location and the insurance company.
• Medicare Part D: Averages around $34/month, but 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.

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