The cost of Medicare Part A includes premiums, deductibles, and copayments.

Monthly premium

Most people do not pay a monthly premium for Medicare Part A. Medicare collects taxes from a person’s salary throughout their working life.

The final fee a person must pay for Part A depends on how many quarters they have worked.

Anyone who has worked at least 40 quarters in their life while paying Medicare taxes will receive a $0 premium. The premium is the amount a person pays each month for Medicare. Medicare Advantage plans and Medigap policies also charge a premium.

Most people qualify for Medicare Part A, which is premium-free. The table below explains Part A premiums in more detail.

Other costs

Other costs for Part A in 2024 include:

• a deductible of $1,632 per benefit period
• $0 copayment for the first 60 days of a hospital stay during each benefit period
• $408 for hospital days 61 to 90
• USD 816 per reserve day from the 91st day of hospital stay, up to a maximum of 60 reserve days

When staying in a care facility, the following costs must be paid:

• $0 for the first 20 days per service period
• $204 for days 21 to 100
• the full cost from day 100

Learn more about how much Medicare pays for hospital stays.

The cost of Medicare Part B may include a monthly premium, deductibles, and cost-sharing.

Monthly premium

Part B requires a monthly premium based on the person’s annual income, so people in different income brackets pay different premiums.

In most cases, the monthly premium in 2024 will be $174.70. See the table below for a complete breakdown of Plan B premiums based on individual annual income and a couple’s joint income based on 2022 earnings.

Other costs

The deductible for Medicare Part B is $240 for 2024.

Cost-sharing is the amount a person pays for the service after paying the deductible. Medicare Part B covers 80% of the cost of the service, while the person pays the remaining 20%.

Learn about Medicare Part B eligibility.

Medicare Part D covers prescription drugs. Private companies manage Part D plans, so costs vary depending on the plan you choose.

Monthly premiums also vary by income. People with higher incomes pay more for Part D premiums. In 2024, premiums will be income-based starting in 2022.

The table below shows the income-related premiums for individuals and couples that a person pays in addition to the premium specific to their plan.

Part D drug costs also depend on the specific drug and tier. Each Part D plan has a drug schedule, which is a list of the drugs the plan covers. Drugs in the lower tiers generally cost less, while drugs in Tier 3 or the specialty tier usually have a higher copayment.

Phases of coverage

In 2024, Part D will include four phases of coverage. Costs may depend on which phase of coverage a person is in.

Learn more about Medicare Part D costs.

The cost of Medicare Advantage plans (Part C) depends on the plan.

Costs may include:

• Rewards
• Deductibles
• Co-payments
• Co-insurance

A person must also pay the premium for Part B. Medicare Advantage includes original Medicare Parts A and B. Part D is often included as well.

Learn more about Medicare Advantage costs.

The cost of Medicare Supplement Plans (Medigap) varies. The cost depends on the following factors:

• the insurer
• the concrete plan
• where the individual lives

Private insurance companies sell Medigap plans in conjunction with Medicare. The plans provide additional coverage to cover some of the costs not covered by original Medicare.

A person can contact Medigap to find out the costs of their specific plan.

Late enrollment in a Medicare plan may result in penalty fees, which are added to the cost of the monthly premium.

If you sign up late for Part A, your monthly premium may increase by up to 10%.

If a person enrolls late for Part B but qualifies for the special enrollment period, they will not typically be charged a penalty, but they may be required to pay an additional 10% for each year they could have enrolled.

If a person enrolls late in Part D, they may have to pay an additional 1% for each month they could have enrolled. This may apply if they don’t enroll in Medicare Plan D when they first get Medicare or if they go 63 days or more without eligible drug coverage.

However, a person generally does not have to pay a Part D penalty if they already have eligible drug coverage or are eligible for Medicare Extra Help.

Learn more about penalties for late Medicare enrollment.

Premiums and copayments for Medicare Part A and Part B increased from 2023 to 2024. The table below shows the changes.

The reason why Medicare costs increase every year is unclear.

However, the Railroad Retirement Board suspects that this could be due to projected increases in health care spending.

CMS also proposes that Medicare adjust copayment, deductible, and premium rates in accordance with the Social Security Act.

Prescription drug costs also rise regularly, which is another possible factor contributing to rising Medicare Part D costs.

At the time of this writing, Medicare has not yet released the costs for Parts A and B for 2025.

The CM has announced the costs of Plan D for 2025. The changes include:

• Change from four to three phases of reporting, namely:
  • annual franchise
  • First coverage
  • Disaster management
• Introduce an annual deductible of $590, increased from $545 in 2024
• requires a lower deductible of $2,000, a reduction of $8,000 in 2024

The cost of Medicare Part A in 2024 includes a monthly premium of either $0.278 or $505. Most people have no monthly premium. This is the rate for people who have worked at least 40 quarters in their lives.

Other costs of Part A include deductibles and copayments.

The cost of Medicare Part B includes a monthly premium that is $174.70 for most people. The deductible is $240, and a person typically pays 20% of the cost of services received.

Costs for Medicare Part D and Medicare Advantage can vary depending on the plan. Drug costs can also vary widely.

Medigap costs depend on factors such as the insurance provider, where the person lives, and the specific plan.

Several factors play a role in rising costs, including rising prescription drug prices. Income also affects the cost of Medicare Part B premiums. Premiums increase for people with higher wages.

To learn more about the cost of your plan in 2024, you can contact Medicare or your insurance provider.