Medicare has three main costs: premiums you pay monthly, deductibles you pay before coverage starts, and copayments you pay per visit
The amount you pay depends on which Medicare parts you have and which services you use. Part A (hospital insurance) has no monthly premium for most people, but a deductible of $1,676 per hospital stay in 2025. Part B (doctor visits and outpatient care) costs $174.70 per month in 2025 for most people, with a $240 deductible and then 20% copayment after that. Part D (prescription drugs) varies by plan, typically $7 to $100+ per month depending on the drugs you take. Part C (Medicare Advantage) replaces Parts A and B with a private plan, usually $0 to $200+ per month, but with different deductibles and copayments than Original Medicare.
These amounts change every January. The 2025 figures above are current, but you will see different numbers if you look at 2026 rates or if your income is higher than average. Income affects Part B and Part D costs through a surcharge called IRMAA (Income-Related Monthly Adjustment Amount). If you earned more than $97,000 as a single person or $194,000 as a married couple in 2023, you pay more.
Key Takeaways
- Part A hospital insurance has no monthly premium for most people but charges $1,676 per hospital stay in 2025.
- Part B doctor insurance costs $174.70 per month in 2025 for most people, plus a $240 yearly deductible and 20% copayment after that.
- Part D prescription drug plans range from roughly $7 to $100+ per month depending on which drugs you take and which plan you choose.
- If your income was above $97,000 (single) or $194,000 (married) in 2023, you will pay a surcharge on top of your Part B and Part D premiums.
- Costs change every January, and the amounts you see here are for 2025 only.
Part A: Hospital Insurance Costs
Part A covers hospital stays, skilled nursing facility care after a hospital stay, hospice, and some home health services. You do not pay a monthly premium if you or your spouse paid Medicare taxes for at least 40 quarters (10 years) while working. If you did not work that long, you may pay up to $278 per month in 2025.
When you use Part A services, you pay a deductible — a flat amount you cover before Medicare starts paying. For a hospital stay in 2025, that deductible is $1,676 for the first 60 days. If you stay longer than 60 days, you pay $419 per day for days 61 through 90. After 90 days, you enter "lifetime reserve days," and you pay $838 per day for up to 60 additional days in your lifetime. Skilled nursing facility care has its own deductible: $0 for the first 20 days, then $209.50 per day for days 21 through 100.
Part B: Doctor and Outpatient Care Costs
Part B covers doctor visits, lab tests, imaging, outpatient surgery, and durable medical equipment like wheelchairs and oxygen. The monthly premium in 2025 is $174.70 for most people, but it can be higher if your income was above the thresholds mentioned above. You pay this premium every month whether you use services or not.
After you pay the yearly deductible of $240 in 2025, Medicare covers 80% of the cost of most services, and you pay 20%. For example, if a doctor visit costs $100 and you have already met your deductible, Medicare pays $80 and you pay $20. Some services like preventive care (annual wellness visits, cancer screenings, vaccines) have no copayment after you meet the deductible. Others, like mental health visits, may have different copayment rules.
Part B also has no out-of-pocket maximum, meaning there is no cap on how much you pay in a year. If you have a serious illness or injury requiring many doctor visits and tests, your costs can grow significantly. This is why many people buy Medigap (supplemental insurance) to cover the 20% copayments and the deductible.
Part D: Prescription Drug Plan Costs
Part D covers prescription medications at pharmacies. You choose a plan from private insurers, and each plan has its own premium, deductible, and copayment structure. Monthly premiums in 2025 typically range from $7 to $100 or more, depending on which drugs the plan covers and how popular the plan is in your area.
Most Part D plans have a yearly deductible, usually $50 to $545 in 2025, though some plans have no deductible. After you meet the deductible, you pay a copayment (a flat amount like $5 or $15) or coinsurance (a percentage like 25%) for each prescription. The amount depends on which "tier" the drug is on — generic drugs are usually cheaper than brand-name drugs.
Part D also has a coverage gap called the "donut hole." Once you and your plan have spent $5,850 on drugs in 2025, you enter the gap and pay more out of pocket until your total out-of-pocket spending reaches $7,050. After that, catastrophic coverage kicks in and you pay only a small copayment. If you take many expensive medications, the donut hole can be a significant cost.
Part C: Medicare Advantage Plan Costs
Part C (Medicare Advantage) is an alternative to Original Medicare. Private insurance companies offer these plans, and they must cover everything Part A and Part B cover, but they do it through their own networks and rules. Some Part C plans have $0 monthly premiums, while others charge $50 to $200+ per month in 2025. The premium varies by plan and location.
Part C plans have their own deductibles and copayments, which are usually lower than Original Medicare for common services like doctor visits. However, you typically must use doctors and hospitals in the plan's network, or pay more. Most Part C plans include Part D drug coverage built in, so you do not buy Part D separately. Part C plans also have an out-of-pocket maximum, usually $5,000 to $10,000 per year, which limits your total costs — a protection Original Medicare does not offer.
Income-Related Surcharges (IRMAA)
If your income was above certain thresholds two years ago, you pay a surcharge called IRMAA on top of your Part B and Part D premiums. For 2025, the thresholds are $97,000 for single filers and $194,000 for married couples filing jointly, based on your 2023 tax return. The surcharge increases in brackets — the higher your income, the more you pay.
For example, a single person with $120,000 in income in 2023 would pay a Part B surcharge of roughly $70 per month in 2025 on top of the standard $174.70 premium. A married couple with $250,000 in income would pay a much larger surcharge. If your income drops significantly (due to retirement, loss of a spouse, or other life changes), you can request that Social Security recalculate your IRMAA using your current year's income instead of the two-year-old figure.
Medigap and Other Supplemental Coverage
Many people on Original Medicare buy Medigap (supplemental insurance) to cover costs that Medicare does not. Medigap plans are sold by private insurers and have their own monthly premiums, typically $100 to $300+ per month depending on age and location. In return, Medigap covers the deductibles, copayments, and coinsurance that Original Medicare leaves you responsible for.
For example, a Medigap Plan G covers the Part B deductible and the 20% copayments, so you pay almost nothing out of pocket for doctor visits and tests. The trade-off is that you pay the Medigap premium every month, even if you do not use services. Medigap is not the same as Part C — you can have Original Medicare plus Medigap, but you cannot have Part C and Medigap at the same time.
Frequently Asked Questions
Do I have to pay for Medicare if I do not use it?
Yes. Part B and Part D premiums are due every month regardless of whether you see a doctor or fill a prescription. Part A has no premium for most people. If you do not sign up for Part B or Part D when you first become may be able to access, you may face a permanent penalty that increases your premiums for life.
What happens if I cannot afford my Medicare costs?
Several programs may help. Medicare Savings Programs (run by your state) can pay your Part B premium, deductible, and copayments if your income is low. The Low-Income Subsidy program helps pay Part D premiums and copayments. Contact your state Medicaid office or call 1-800-MEDICARE to learn whether you may have access to.
Are there any Medicare services with no cost?
Yes. Preventive services like annual wellness visits, cancer screenings, vaccines, and blood pressure checks are covered at no cost after you meet your Part B deductible (or with no deductible at all for some services). The exact list changes, so ask your doctor which preventive services are free for you.
Can my Medicare costs go down if my income drops?
Yes, but only for IRMAA surcharges. If your income drops due to retirement, loss of a spouse, or other major life changes, you can ask Social Security to recalculate your IRMAA using your current year's income instead of the two-year-old figure. Other costs like Part B premiums and deductibles are set by Medicare and do not change based on individual income.
What is the difference between what I pay now and what I will pay next year?
Medicare costs change every January. Premiums, deductibles, and copayments for 2026 will be announced in the fall of 2025. Check Medicare.gov or call 1-800-MEDICARE in October or November to learn the new amounts before they take effect on January 1.