What You Pay Out of Pocket Under Medicare in 2024

Medicare has different deductibles depending on which part of the program you use. Part A (hospital insurance) has a deductible of $1,676 per benefit period in 2024. Part B (medical insurance) has a deductible of $240 per year. If you have Part D (prescription drug coverage), your deductible varies by plan — it can range from $0 to $545, depending on which plan you chose. These amounts change each year.

Beyond the deductible, you also pay coinsurance and copayments for services. For Part A hospital stays, you pay the full deductible for the first 60 days, then $419 per day for days 61–90, and $838 per day for days 91–150. For Part B, you typically pay 20 percent of the cost after you meet your deductible. These costs add up, which is why many people buy supplemental coverage or choose Medicare Advantage plans that cap total out-of-pocket spending.

Key Takeaways

  • Part A has a $1,676 deductible per benefit period; Part B has a $240 annual deductible in 2024.
  • Part D prescription drug deductibles range from $0 to $545 depending on your specific plan.
  • After you meet your deductible, you still pay coinsurance (usually 20 percent for Part B services) and copayments for some services.
  • Medicare Advantage plans have their own deductibles and out-of-pocket limits, which may be lower or higher than Original Medicare.

How Part A Deductibles Work

Part A covers hospital stays, skilled nursing facility care, hospice, and some home health services. The $1,676 deductible applies to each benefit period, not each calendar year. A benefit period begins the day you enter a hospital and ends 60 days after you leave without receiving any inpatient hospital or skilled nursing care.

If you are readmitted to the hospital within 60 days of leaving, you do not pay another deductible — you are still in the same benefit period. But if you stay out of the hospital for 60 days and then return, a new benefit period starts and you owe another $1,676 deductible. This means someone with multiple hospitalizations in a year could pay the deductible more than once.

After you pay the deductible, Part A covers most of your hospital costs for the first 60 days. Days 61–90 require a daily copayment of $419. If you need to stay longer, days 91–150 cost $838 per day. Beyond 150 days, you pay all costs yourself.

How Part B Deductibles Work

Part B covers doctor visits, outpatient services, medical equipment, and preventive care. The $240 annual deductible is straightforward — once you pay $240 in Part B services in a calendar year, your deductible is met for the rest of that year. After that, you pay 20 percent coinsurance for most services.

Some preventive services have no deductible and no coinsurance. These include annual wellness visits, cancer screenings, vaccinations, and cardiovascular screenings. Your doctor's office can tell you which services are covered at no cost.

If you see multiple providers, keep track of what you have paid toward your deductible. Providers do not always coordinate this information automatically, so you may need to ask each office how much of your deductible you have used.

Part D Prescription Drug Deductibles

Part D plans are offered by private insurance companies, and each plan sets its own deductible. In 2024, deductibles range from $0 to $545. Some plans have no deductible at all, while others charge the maximum. The deductible you pay depends entirely on which plan you choose.

After you meet your deductible, you enter the initial coverage phase, where you pay a copayment or coinsurance for each prescription. The amounts vary by drug and plan. Once you and your plan have spent $5,850 combined on covered drugs in 2024, you enter the coverage gap (sometimes called the "donut hole"), where you pay a higher share of drug costs. When your out-of-pocket spending reaches $8,550, catastrophic coverage kicks in and you pay only a small copayment for the rest of the year.

Because deductibles and cost-sharing vary so much between plans, comparing plans during the annual enrollment period (October 15 to December 7) can save you hundreds of dollars per year.

Medicare Advantage Plan Deductibles

If you choose a Medicare Advantage plan (Part C) instead of Original Medicare, you get Part A and Part B coverage through a private insurer. These plans have their own deductibles, which may be $0, or they may be higher or lower than Original Medicare's deductibles.

Medicare Advantage plans must cap your total out-of-pocket spending. In 2024, the maximum out-of-pocket limit is $8,850 for in-network services. Once you reach this limit, the plan pays 100 percent of covered services for the rest of the year. This can be helpful if you have high medical costs, because Original Medicare has no out-of-pocket cap.

However, Medicare Advantage plans often have narrower networks of doctors and hospitals, and they may require referrals for specialists. Read the plan details carefully to understand what deductibles, copayments, and network restrictions explore.

Supplemental Insurance and Deductibles

Medigap (supplemental insurance) policies are sold by private insurers and help pay costs that Original Medicare does not cover — including deductibles, coinsurance, and copayments. If you buy a Medigap policy, you still pay the Medicare deductible first, but the Medigap plan then covers some or all of the remaining costs, depending on which plan you choose.

For example, a Medigap Plan G covers the Part B deductible, so you would not pay that $240 out of pocket. However, you would still owe the Part A deductible unless your Medigap plan covers it. Different Medigap plans offer different levels of coverage, so compare plans to see which deductibles and costs each one covers.

Medigap premiums vary by age, location, and plan type. Some people find that the monthly premium for Medigap is worth the predictability of knowing exactly what they will pay for medical services.

Keeping Track of Your Deductible Throughout the Year

Your healthcare providers should send you an Explanation of Benefits (EOB) after each service showing what was billed, what Medicare paid, and what you owe. Keep these documents and add up what you have paid toward your deductible. If you use multiple providers, you may need to contact each one to confirm how much of your deductible you have used.

For Part D, your plan sends you a summary each month showing your deductible progress and current costs. You can also log into your plan's website or call the customer service number on your insurance card to check your deductible status at any time.

Knowing where you stand helps you plan for large medical expenses. If you have not met your deductible yet and you know you need a procedure, you might schedule it strategically to manage your out-of-pocket costs.

Frequently Asked Questions

Do I have to pay both a Part A and Part B deductible?

Yes. Part A and Part B are separate, so you pay a $1,676 deductible for Part A services and a $240 deductible for Part B services each year. If you have a Medigap plan, it may cover one or both deductibles depending on which plan you choose.

What happens if I do not meet my Part B deductible by the end of the year?

The deductible does not carry over. On January 1, your deductible resets to $240, and you start over. Any amount you paid toward the previous year's deductible is gone.

Can my Part D deductible be higher than $545?

No. The maximum Part D deductible for 2024 is $545. Some plans have lower deductibles or no deductible at all. You choose your plan during the annual enrollment period, so you can pick one with a deductible that fits your budget.

If I have a Medicare Advantage plan, do I still pay the same deductibles as Original Medicare?

No. Medicare Advantage plans set their own deductibles, which may be $0 or different amounts than Original Medicare. However, the plan must cap your total out-of-pocket spending at $8,850 for in-network services in 2024.

How do I know if a service is covered before I pay the deductible?

Call your provider's office or your Medicare plan before your appointment and ask whether the service is covered and whether it counts toward your deductible. Preventive services are usually covered at no cost, but it is worth confirming.