Medicare deductibles for 2024 vary by plan type, and you pay them before Medicare or your plan starts to cover costs

Original Medicare Part A (hospital insurance) has a deductible of $1,632 per benefit period in 2024. A benefit period starts when you enter a hospital and ends 60 days after you leave. If you go back to the hospital after those 60 days, you pay the deductible again. Original Medicare Part B (medical insurance) has a deductible of $240 per year in 2024. Once you meet it, Part B covers 80% of approved services and you pay 20%.

If you have a Medicare Advantage plan (Part C), the deductible varies by plan and can range from $0 to several hundred dollars. If you have a Medigap supplemental policy, you still pay the Part A and Part B deductibles, but your Medigap plan may cover some or all of what you owe after that. Medicare Part D (prescription drug coverage) has its own deductible, which varies by plan but cannot exceed $545 in 2024.

Key Takeaways

  • Part A deductible is $1,632 per benefit period (not per year), and you pay it each time you enter the hospital after a 60-day gap.
  • Part B deductible is $240 per year, and you pay 20% of approved services after you meet it.
  • Medicare Advantage plans set their own deductibles, which may be lower or higher than Original Medicare.
  • Part D prescription drug deductibles vary by plan and are separate from Part A and Part B deductibles.
  • Medigap plans cover some deductibles and coinsurance, but you still pay the Part A and Part B deductibles first.

How Part A deductible works if you need hospital care

When you are admitted to a hospital, you pay the full $1,632 deductible before Medicare starts to pay. After you meet it, Medicare covers all approved hospital costs for days 1 through 60 of your stay. On days 61 through 90, you pay $408 per day (called coinsurance). If you stay longer than 90 days, you can use lifetime reserve days, and you pay $816 per day for those.

The key point is that the deductible resets when your benefit period ends. If you leave the hospital and return 60 days later, you owe the full $1,632 deductible again. But if you return within 60 days, you do not pay another deductible — you are still in the same benefit period. This is different from a yearly deductible, so it is worth tracking your dates if you have multiple hospital stays.

How Part B deductible works for doctor visits and outpatient care

The Part B deductible of $240 applies once per calendar year, January through December. You pay this amount toward covered services like doctor visits, lab tests, imaging, and outpatient procedures before Medicare starts to pay its share. Once you meet the $240, Medicare covers 80% of the approved amount for most services, and you pay the remaining 20% (called coinsurance).

Some Part B services do not count toward the deductible. Preventive care like annual wellness visits, cancer screenings, and vaccines are covered at 100% with no deductible. If you are unsure whether a service has a deductible, ask your doctor's office to check before your appointment. They can tell you what you will owe.

Medicare Advantage plan deductibles and how they differ

Medicare Advantage plans are run by private insurance companies and must cover everything Original Medicare covers, but they set their own deductibles and out-of-pocket limits. Some plans have $0 deductibles, while others charge $500 or more. The deductible may explore to the whole plan, or there may be separate deductibles for different types of care — one for primary care visits, another for specialists, and another for hospital stays.

Your plan documents will show your deductible clearly. If you are comparing plans during open enrollment, check the deductible amount and also look at the out-of-pocket maximum — the most you will pay in a year for covered services. Once you reach that maximum, the plan covers 100% of remaining approved costs for the rest of the year.

Part D prescription drug deductible and how it affects your costs

Part D plans have their own deductible, separate from Part A and Part B. In 2024, the maximum deductible a plan can charge is $545, but many plans have lower deductibles or no deductible at all. Once you meet your plan's deductible, you move into the initial coverage phase, where you and the plan share the cost of your drugs.

Some drugs are covered at no cost even before you meet the deductible — these are usually preventive medications. Check your plan's formulary (the list of covered drugs) to see which ones are covered before the deductible applies. If you take expensive medications, comparing Part D plans during open enrollment can save you hundreds of dollars per year.

How Medigap supplemental insurance affects what you pay

Medigap policies are sold by private insurance companies and are designed to cover costs that Original Medicare does not — like deductibles, coinsurance, and copayments. If you have a Medigap plan, you still pay the Part A and Part B deductibles to Medicare first, but your Medigap plan may reimburse you for some or all of that amount, depending on which Medigap plan you chose.

Different Medigap plans (labeled A through N) cover different combinations of costs. Plan G, for example, covers the Part B deductible and most coinsurance. Plan N covers coinsurance but not the Part B deductible. Review your Medigap plan documents to see exactly what deductibles and coinsurance your plan covers. Medigap does not cover Part D drugs — you need a separate Part D plan for that.

When deductibles reset and what to track

Part A deductible resets each time a new benefit period starts (60 days after you leave the hospital). Part B deductible resets on January 1 each year. Part D deductible also resets on January 1. If you have a Medicare Advantage plan, check your plan documents to see when deductibles reset — most reset on January 1, but some may have different dates.

Keep records of what you have paid toward deductibles, especially if you have multiple providers or use different pharmacies. Your Medicare Summary Notice (sent quarterly) shows what you have paid toward Part A and Part B deductibles. Your Part D plan sends a separate statement showing your drug deductible progress. If you notice an error, contact your plan or Medicare right away.

Frequently Asked Questions

Do I have to pay the Part A deductible every time I go to the hospital?

You pay it once per benefit period. If you are admitted to the hospital, discharged, and readmitted within 60 days, you do not pay another deductible. If you are readmitted after 60 days have passed since discharge, a new benefit period starts and you owe the deductible again.

What happens if I cannot afford to pay my deductible?

Talk to your doctor's office or hospital financial counselor before your appointment or stay. Many hospitals have financial information programs or payment plans. You can also contact your state's Health Insurance Counseling and information Program (HICAP) for free guidance on your options.

Does my Medigap plan cover the Part D drug deductible?

No. Medigap covers Part A and Part B deductibles and coinsurance, but not Part D. You need a separate Part D plan to cover prescription drugs, and that plan has its own deductible. Medigap and Part D work together but are separate policies.

Can I change my Medicare plan if the deductible is too high?

Yes, during the Annual Enrollment Period (October 15 to December 7 each year), you can switch to a different Medicare Advantage plan or change from Original Medicare to Advantage or vice versa. You can also change your Part D plan. If you have a may have access to life event (like moving or losing other coverage), you may be able to change plans outside the enrollment period.

Are preventive services covered without meeting the deductible?

Yes. Part B covers preventive services like annual wellness visits, cancer screenings, vaccines, and some lab tests at 100% with no deductible. Your doctor can tell you which services are considered preventive. Some preventive Part D drugs are also covered before you meet the deductible.