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How Much Does Medicare Cost?

By

Kimberly Lankford

Published

Thursday, July 11, 2024

You might think that when you enroll in Medicare, the federal government health insurance program will pay for everything related to your health care. It doesn’t. Tallying how much you pay out of pocket for Medicare each year can lead to serious sticker shock.​​

You might think that when you enroll in Medicare, the federal government health insurance program will pay for everything related to your health care. It doesn’t. Tallying how much you pay out of pocket for Medicare each year can lead to serious sticker shock.​​

When you add up all the premiums, deductibles, copays and coinsurance, the average Medicare enrollee can expect to spend thousands of dollars a year to get medical care. And the tab can swing wildly each year, depending on the state of a beneficiary’s health, where he or she lives, and whether the government and insurers have instituted any price increases — or decreases. Individual plans can also tinker with the services and drugs they cover.​​

Medicare’s price tag, deciphered

Medicare covers the majority of your health care expenses each year. But you still may have to pay thousands of dollars in out-of-pocket costs:

2024 Premiums

Part A: No fee for the majority of beneficiaries*​​

Part B: $174.70 monthly for 2024 (automatically deducted from Social Security benefit payments). Individuals with an annual income of more than $103 ,000 pay a higher premium.​​

Part C (Medicare Advantage): $174.70 monthly for the Part B premium for 2024, plus any additional premium set by the insurer.​​

Part D prescription drug plan: Premium varies by plan, averages $55.50 monthly for 2024.

*A small number of beneficiaries (who didn’t pay enough Medicare taxes during their working years) must pay a $505 monthly premium in 2024.

2024 Deductibles

Part A: $1,632 for each hospital stay in 2024.

Part B: $240 for 2024.

(Some Medigap policies cover Part A and Part B deductibles.)

Part C (Medicare Advantage): Amount varies by plan.

Part D prescription drug plan: Amount varies by plan but cannot exceed $545 for 2024.

Copays

Part C (Medicare Advantage): Amount varies by plan and by service.

Part D prescription drug plan: Amount varies by plan and by prescription.

Coinsurance

​Part A: No fee for hospital stays of 60 days or

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