By the age of 65, the average cost of healthcare for an individual is over $11,300 per year in the US. Medical insurance like Medicare may cover much of that amount, but it is not free. 

How much does Medicare cost at age 65? 

Each part of Medicare has different costs, including copayments, premiums, and deductibles. Let’s take a closer look at 2024 Medicare costs and the factors that can affect what you pay. 

Medicare Part A costs 

Part A premium

If you or your spouse worked at least 40 quarters or about ten years, then you qualify to receive premium-free Medicare Part A. Premium-free Part A means you won’t have to pay a monthly premium for Part A coverage. If you do not meet the work threshold, then your Part A premium will be $278 (if you/your spouse paid Medicare taxes for 30-39 quarters) or $505 (if you/your spouse paid Medicare taxes for less than 30 quarters) per month in 2024. 

Part A deductible

Although most people qualify for a $0 premium Medicare Part A, that doesn’t mean that Part A is completely free. Many people must pay the deductible. In 2024, the deductible for Part A is $1,632 for each benefit period. 

Keep in mind: instead of a traditional annual deductible, Medicare Part A uses a benefit period deductible. Instead of resetting annually, your Part A deductible resets when the benefit period ends. A benefit period begins when you enter the hospital and ends when you have not received an inpatient hospital for 60 days in a row.

Part A coinsurance

There are also coinsurance payments that you may have to make if you have an extended stay in the hospital. After paying your deductible, you must pay: 

• $0 per day for days 1-60; 
• $408 per day for days 61-90; 
• $816 per day for days 91-150; 
• All costs after day 150. 

Medicare Part A also gives each person 60 lifetime reserve days. If your hospital stay lasts longer than 90 days, then Medicare will pay for up to 60 days except for a daily coinsurance. However, once you have used these days, they are gone. 

Medicare Part A updated costs for 2024

	2023	2024	Change
	Premium	Premium
If you/your spouse paid Medicare taxes for 40 quarters or more	$0	$0	–
If you/your spouse paid Medicare taxes for 30-39 quarters	$278	$278	–
If you/your spouse paid Medicare taxes for less than 30 quarters	$506	$505	↓ by $1
	Deductible	Deductible
for each benefit period	$1,600	$1,632	↑ by $32
	Coinsurance	Coinsurance
Inpatient stay
Days 1-60:	$0	$0	–
Days 61-90:	$400	$408	↑ by $8
Days 90 –150:	$800	$816	↑ by $16
After day 150:	You pay all costs	You pay all costs	–
Skilled nursing facility
Days 1-20:	$0	$0	–
Days 21-100:	$200	$204	↑ by $4
Days 101- beyond:	You pay all costs	You pay all costs	–
Home healthcare
for covered home healthcare services	$0	$0	–
for durable medical equipment	20%	20%	–
Hospice care
for covered hospice care services	$0	$0	–
for each prescription drug & similar products for pain relief	up to $5	up to $6	–
for inpatient respite care	5%	5%	–

Medicare Part B costs

Part B premium

Unlike Part A, most people pay the standard premium amount for Medicare Part B. In 2024, this monthly premium is $174.70. Your 2024 Medicare Part B premium is based on your gross income from your tax return. The Part B premium can be as much as $594. 

Part B deductible

You are also responsible for paying a yearly deductible for Medicare Part B. In 2024, this deductible is $240.  

For care covered by Part B, you are responsible for paying 20% of the cost, and Medicare will pay 80 percent. However, some services and screenings covered by Part B do not require a copay.  

Medicare Part D costs

Prescription Drug Plans are offered by private insurance companies, and each plan has a list, or formulary, that tiers medications by cost, with the lower-tiered medications being cheaper.

Part D premium

Your Part D plan premium depends on the type of coverage you choose. The average premium in 2024 is $55.50. Your annual income also affects the total cost of your premium, with higher earners paying up to $81.00 in addition to the regular premium. 

Part D deductible

The deductible for Part D also varies. Your plan may have no deductible at all. However, no Medicare Part D plan can have a deductible higher than $545 in 2024. 

Some people choose a standalone Medicare Part D plan, and some select a Medicare Advantage or Part C plan that includes a Part D component. You will need to consider the types of medication you take when you choose a Part D plan since the out-of-pocket 2024 Medicare costs can vary considerably from one private insurer to another. 

Medicare Part C costs

Like Part D costs, Medicare Part C costs can vary widely. Part C, also called Medicare Advantage, is private insurance that combines Parts A and B and may also include additional coverage. The nationwide average Medicare premium for Part C in 2024 is $18.50 per month. But many Part C plans have a $0 premium. There are many factors that can affect the cost of your Part C premium, including your: 

• Location; 
• Plan type; 
• Coverage; 

You’ll also need to consider the plan’s deductible, copayments, or coinsurance rates. Remember that each plan may have a different out-of-pocket limit. 

Medicare Supplement Insurance (Medigap) costs

Monthly premium: Cost varies, ~$100-$400

Annual deductible: Varies

Medicare Supplement Plans are offered by private insurance companies and cover the 20% that Original Medicare doesn’t cover for services. Medicare Supplement plans often cover copays, deductibles, skilled nursing care premiums, and excess hospitalization.

FAQs 

What are Medicare premiums? 

Medicare premiums are the amount of money you pay for your insurance each month. Your premiums for each part of Medicare can vary. Most people pay: 

• $0 for Part A; 
• $174.70 for Part B;
• An average of $18.50 p/month for Part C (Medicare Advantage); 
• An average of $55.50 for Part D. 

Your Medicare premiums do not include deductibles, copayments, or coinsurance rates. 

How is my Medicare premium calculated? 

Medicare calculates your premium for Part A based on the amount of time you worked before enrolling in Medicare. If you worked for 40 quarters or approximately 10 years, then you will not pay a premium.  

For Medicare Part B, your Medicare premiums are based on income. Social Security probably used your most recent tax data to determine whether you pay the standard rate of $174.70 or a higher rate of up to $594.00. 

Medicare also uses your tax data to calculate your modified adjusted gross income. This amount affects your Part D premium because people with higher incomes pay an additional fee on their premium. 

You can estimate your Medicare premium costs for Part B using the Medicare Premium Calculator, or checking the summary table for Part B premiums by income bracket in this Medicare Intro.

What income is used to determine Medicare premiums? 

Medicare uses your modified adjusted gross income (MAGI) to determine your Medicare premiums. Your MAGI is based on your taxable income and includes credits and deductions. Medicare bases its MAGI calculations on your tax return from two years before. For example, your 2024 Medicare premiums are based on income reported in your tax return from 2022. 

Article updated on October 13, 2023