Medicare premiums and costs for 2024

Medicare has four main costs: the monthly premium you pay for Part B (doctor visits), the monthly premium for Part D (prescription drugs), the annual deductible before coverage kicks in, and the copayments or coinsurance you pay when you use care. In 2024, Part B premiums range from $174.70 to $560.50 per month depending on your income, Part D premiums vary by plan and range from roughly $7 to $100+ per month, and Part B has a $240 annual deductible. What you actually pay depends on which parts of Medicare you have, which plan you choose, your income level, and how much medical care you use.

Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working, but it does have a deductible of $1,632 per hospital stay in 2024. If you need skilled nursing care after a hospital stay, you pay coinsurance starting on day 21. These costs reset each benefit period, which begins when you enter the hospital and ends 60 days after you leave.

Key Takeaways

  • Part B premiums in 2024 start at $174.70 per month for most people but can reach $560.50 per month if your income is above $103,000 as a single filer.
  • Part A has no monthly premium for most people but charges $1,632 per hospital stay in 2024 before coverage begins.
  • Part D prescription drug premiums vary by plan and insurer, ranging from around $7 to over $100 monthly, and you choose your plan each year during open enrollment.
  • If you delay enrolling in Part B or Part D past your may be able to access date without other coverage, you may pay a permanent penalty on top of your regular premium.
  • Your actual out-of-pocket costs depend on which type of Medicare plan you choose — Original Medicare, a Medicare Advantage plan, or a Medigap supplemental policy.

Part B premiums based on your income

Your Part B premium depends on your Modified Adjusted Gross Income (MAGI) from two years prior. In 2024, if your MAGI as a single filer is $103,000 or less, you pay the standard premium of $174.70 per month. If your income is higher, you pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of that base premium. The brackets go up to $560.50 per month for single filers with MAGI above $499,000.

If you are married filing jointly, the income thresholds are roughly double. For example, married couples with MAGI of $206,000 or less pay the standard $174.70, while those above $998,000 pay $560.50. Medicare uses your 2022 tax return to calculate your 2024 premium, so if your income dropped significantly in 2023 or 2024 — due to retirement, job loss, or a major life event — you can request a recalculation by contacting Social Security.

Part D prescription drug plan costs

Part D premiums vary widely because many insurers and pharmacy benefit managers offer different plans. In 2024, the lowest-cost plans start around $7 to $10 per month, while comprehensive plans can exceed $100 monthly. The actual premium you pay depends on which plan you choose during the annual open enrollment period, which runs from October 15 to December 7 each year.

Beyond the monthly premium, you also pay a deductible (typically $100 to $500 per year, depending on the plan), copayments for each prescription, and coinsurance once you reach the coverage gap. The coverage gap, sometimes called the "donut hole," is a range of drug costs where you pay a larger share. In 2024, the gap begins after you and your plan have spent $5,850 combined on covered drugs, and it ends when your out-of-pocket spending reaches $7,050. After that point, you pay only 5 percent coinsurance for the rest of the year.

Deductibles and copayments in Original Medicare

If you choose Original Medicare (Part A and Part B), you face several out-of-pocket costs beyond premiums. Part B has an annual deductible of $240 in 2024, which you must meet before Medicare starts paying for doctor visits, outpatient services, and tests. After you meet the deductible, you typically pay 20 percent coinsurance for most services, meaning Medicare pays 80 percent.

Part A covers hospital stays, but you pay the full $1,632 deductible for each benefit period. If your hospital stay lasts more than 60 days, you pay $408 per day for days 61 through 90, and $816 per day for days 91 through 150. Skilled nursing facility care is covered only after a may have access to hospital stay of at least three days, and you pay coinsurance of $204 per day for days 21 through 100 in 2024. Home health care and hospice have different cost structures, with home health generally covered at no cost if Medicare deems it medically necessary.

Medicare Advantage and Medigap costs

Medicare Advantage (Part C) plans are offered by private insurers and often have lower or zero monthly premiums compared to Original Medicare plus Medigap. However, they typically have higher copayments and coinsurance when you use care, and they limit you to a network of doctors and hospitals. Many Advantage plans include Part D prescription coverage built in, so you do not pay a separate Part D premium. Out-of-pocket maximums in 2024 range from around $3,000 to $7,000 per year, depending on the plan, which means your total costs are capped.

Medigap (supplemental insurance) works differently. You keep Original Medicare and buy a separate policy from a private insurer to cover costs that Medicare does not pay — deductibles, copayments, and coinsurance. Medigap premiums vary by plan type (Plan A, Plan B, Plan G, and others) and by insurer, ranging from roughly $100 to $300+ per month. The advantage is predictability: once you know your Medigap premium, you know most of your costs are covered. The trade-off is that Medigap premiums are typically higher than Advantage premiums, and you still pay Part D separately.

Late enrollment penalties

If you do not enroll in Part B when you first become may be able to access at 65, you pay a permanent 10 percent penalty on your Part B premium for each full year you delayed. For example, if you delayed Part B for three years, you pay an extra 30 percent on top of your regular premium for the rest of your life. The only exception is if you had other health coverage (such as employer coverage) during the time you were not enrolled in Part B.

Part D has a similar penalty: if you go 63 or more days without Part D or other creditable prescription coverage, you pay a permanent penalty of about 1 percent of the national average Part D premium for each month you were without coverage. These penalties are added to your monthly premium and do not go away, so it is important to enroll during your initial may be able to access period or during the annual open enrollment period if you miss the important date.

How to find current plan costs and compare options

Medicare.gov has a plan finder tool where you can enter your zip code, the drugs you take, and your preferred doctors and hospitals to see which plans are available in your area and what they cost. The tool shows you the estimated monthly premium, deductible, copayments, and annual out-of-pocket maximum for each plan. You can also call 1-800-MEDICARE to speak with a representative who can walk you through your options.

If you need help understanding your choices, your State Health Insurance information Program (SHIP) offers free counseling. You can find your local SHIP by visiting shiptalk.org or calling 1-877-839-2675. SHIP counselors can review your specific situation, explain the difference between Original Medicare and Advantage plans, and help you understand what your costs might be based on your health and prescriptions.

Frequently Asked Questions

Do I pay Medicare taxes while I am still working?

Yes. Medicare tax is 1.45 percent of your wages, and your employer matches that amount. If you are self-employed, you pay the full 2.9 percent. These taxes fund Part A (hospital insurance). You pay Medicare tax regardless of age, and it does not reduce the amount you pay in premiums later.

What happens to my Medicare costs if I work past 65?

You can delay enrolling in Part B if you have employer health coverage and are still working. Once you leave your job or lose that coverage, you have eight months to enroll in Part B without penalty. Your Part B premium does not increase based on age, but it does increase if you delay enrollment without other coverage.

Can I change my Part D plan if my costs go up?

Yes. You can switch Part D plans during the annual open enrollment period from October 15 to December 7, and the change takes effect January 1. If your circumstances change significantly — such as a major drop in income or a change in the drugs you take — you may be able to make changes outside the open enrollment window.

Are there any Medicare costs I do not have to pay?

Preventive care covered by Part B, such as annual wellness visits, cancer screenings, and vaccinations, are covered at no cost after you meet your deductible. Some Advantage plans also cover dental, vision, and hearing services at no additional cost, though these vary by plan.

What if I cannot afford my Medicare premiums?

If your income is low, you may be able to get help through Medicaid, the Medicare Savings Program, or the Low-Income Subsidy program for Part D. Contact your state Medicaid office or call 1-800-MEDICARE to learn whether you may have access to for these programs.