What the 2024 Medicare deductible means for you
A deductible is the amount you pay out of your own pocket before Medicare starts to pay its share. In 2024, the deductible amounts depend on which part of Medicare you have. Part A (hospital insurance) has one deductible per benefit period. Part B (medical insurance) has a separate annual deductible. Part D (prescription drug coverage) has yet another. You do not pay all three at once — each covers different services — but you need to know what each one is so you are not surprised by a bill.
The deductible amounts change each year. They are set by Medicare based on expected healthcare costs. Knowing your deductible helps you budget for medical expenses and understand what your first bills will look like before Medicare's share kicks in.
Key Takeaways
- Part A deductible in 2024 is $1,632 per benefit period, which covers a hospital stay or skilled nursing facility stay.
- Part B deductible in 2024 is $240 per year, after which Medicare covers 80% of most outpatient services.
- Part D deductible varies by plan but cannot exceed $505 in 2024, and it applies only to prescription drugs.
- If you have a Medigap or Medicare Advantage plan, your deductible may be different from Original Medicare amounts.
- Deductible amounts reset each year on January 1 for Part B and Part D, and at the start of each benefit period for Part A.
Part A deductible: Hospital and skilled nursing care
Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health services. The Part A deductible is $1,632 per benefit period in 2024. A benefit period starts the day you enter a hospital or skilled nursing facility and ends 60 days after you leave without receiving any inpatient care.
This means if you go to the hospital in January, pay the $1,632 deductible, and then return to the hospital in March while still in the same benefit period, you do not pay the deductible again. However, if you stay out of the hospital for 60 days and then return, a new benefit period begins and you owe another $1,632 deductible.
After you meet the deductible, Medicare covers all costs for days 1 through 60 of a hospital stay. For days 61 through 90, you pay a coinsurance amount (not the deductible) of $408 per day in 2024. Beyond 90 days, costs rise further. Skilled nursing facility care follows a similar structure, with Medicare covering all costs for days 1 through 20, and you paying coinsurance for days 21 through 100.
Part B deductible: Doctor visits and outpatient services
Part B covers doctor visits, outpatient care, medical equipment, and preventive services. The Part B deductible is $240 per year in 2024. This resets on January 1 each year, regardless of when you enrolled in Medicare.
Once you have paid $240 out of pocket for Part B services in a calendar year, Medicare begins to cover its share. For most services, Medicare then pays 80% and you pay 20% (called coinsurance). For some preventive services like annual wellness visits and cancer screenings, Medicare covers 100% after the deductible is met, with no coinsurance.
The deductible applies to the actual charge Medicare approves, not the full price a provider might bill. If a doctor charges $500 but Medicare approves only $300, your deductible applies to the $300 amount.
Part D deductible: Prescription drugs
Part D covers prescription drugs through private insurance plans. Each Part D plan sets its own deductible, but it cannot be higher than $505 in 2024. Some plans have no deductible at all. You can see the deductible amount for each plan when you compare them during enrollment.
The Part D deductible resets on January 1 each year. After you meet it, you enter a phase where you and your plan share the cost of drugs — you typically pay a copay or coinsurance, and the plan pays the rest. If your drug costs reach a certain threshold (called the "coverage gap" or "donut hole"), your costs may change again.
The deductible applies only to prescription drugs, not to doctor visits or hospital care. If you take no prescription drugs, you may not need to meet a Part D deductible at all.
How deductibles work with Medigap and Medicare Advantage plans
If you have a Medigap policy (supplemental insurance), it may pay some or all of your Medicare deductibles and coinsurance. Some Medigap plans cover the Part A deductible, the Part B deductible, or both. The exact coverage depends on which Medigap plan (A through N) you choose. This is one reason people buy Medigap — to reduce out-of-pocket costs.
If you have a Medicare Advantage plan (Part C), you have a different deductible structure. Medicare Advantage plans are required to cover the same services as Original Medicare, but they set their own deductibles, copays, and coinsurance amounts. Your deductible in a Medicare Advantage plan may be lower, higher, or structured differently than Original Medicare. You need to check your specific plan's documents to know what you owe.
When deductibles reset and how to track them
Part B and Part D deductibles reset on January 1 each year. Part A deductibles reset at the start of each new benefit period, which depends on your hospital or skilled nursing stays. If you have not been in a hospital or skilled nursing facility for 60 days, a new benefit period has begun.
Your Medicare Summary Notice (MSN) shows what you have paid toward your deductible so far in the year. You receive this notice every three months if you have Original Medicare. You can also check your deductible progress online through your Medicare account at Medicare.gov. If you have a Medicare Advantage or Medigap plan, your plan sends you a similar statement showing your deductible status.
Keeping track matters because once you know you have met your deductible, you understand what Medicare will cover next. Some people intentionally schedule preventive care or planned procedures early in the year to use their deductible efficiently.
Questions to ask your doctor or Medicare
Before a procedure or hospital stay, ask your doctor's office what the Medicare-approved charge will be and confirm whether you have already met your deductible for the year. If you are unsure about your deductible status, call Medicare at 1-800-MEDICARE (1-800-633-4227) and have your Medicare card ready. A representative can tell you exactly how much of your deductible you have used.
If you receive a bill that seems wrong, ask the provider to explain which deductible it applies to and request an itemized statement. Providers sometimes bill incorrectly, and you have the right to ask questions before you pay.
Frequently Asked Questions
Do I have to pay all three deductibles in 2024?
No. You pay each deductible only if you use that part of Medicare. If you never go to the hospital, you do not pay the Part A deductible. If you take no prescription drugs, you do not pay a Part D deductible. Most people do pay the Part B deductible because it covers doctor visits, which are common.
What happens if I switch Medicare plans mid-year?
If you switch from Original Medicare to a Medicare Advantage plan or vice versa, your deductible resets with the new plan. Any deductible you paid toward your old plan does not carry over. This is one reason to think carefully before switching plans outside of the annual enrollment period.
Does my Medigap plan pay my deductibles automatically?
No. Your Medigap plan pays the deductible or coinsurance after you have paid it first. You submit the bill to your Medigap insurer, and they reimburse you according to your plan. Some providers are set up to bill Medigap directly, but you should confirm this before your appointment.
Can I use my Health Savings Account (HSA) to pay my Medicare deductible?
Once you enroll in Medicare, you cannot contribute new money to an HSA. However, you can use money already in your HSA to pay deductibles and other out-of-pocket costs. Check with your HSA administrator about the rules for your specific account.
What if I cannot afford to pay my deductible?
Talk to your doctor's office or hospital financial counselor about payment plans or financial hardship programs. Some providers offer discounts or payment arrangements. You can also contact your local Area Agency on Aging or a patient advocate organization for your condition to learn about other resources in your area.