What You Pay Out of Pocket: Medicare Deductibles in 2024

How Much You Pay Before Medicare Covers Care

A deductible is the amount you pay out of your own pocket before Medicare starts to pay. In 2024, the deductible amounts differ depending on which part of Medicare you use. 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 its own deductible that varies by plan. If you have a Medigap or Medicare Advantage plan, your deductible may be different from Original Medicare.

The deductible resets each year on January 1 for Part B and Part D. For Part A, a new benefit period begins when you are admitted to the hospital, and the deductible applies to each new period. Understanding which deductible applies to which service helps you budget for healthcare costs and know when Medicare will start paying its share.

Key Takeaways

Part A deductible in 2024 is $1,676 per benefit period, which covers a hospital stay and related care.
Part B deductible in 2024 is $240 per year, after which Medicare covers 80 percent of approved services.
Part D deductible varies by plan but cannot exceed $505 in 2024, and applies only to prescription drugs.
Medicare Advantage and Medigap plans have their own deductible structures that may be lower or higher than Original Medicare.
Once you meet your deductible, you still pay copayments or coinsurance for most services.

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 for 2024 is $1,676 per benefit period. A benefit period begins the day you enter the hospital and ends 60 days after you leave the hospital or skilled nursing facility without receiving any inpatient care.

You pay the full $1,676 when you are admitted to the hospital. After you meet this deductible, Medicare covers all approved hospital costs for days 1 through 60 of your stay. For days 61 through 90, you pay a daily coinsurance amount (in 2024, this is $419 per day). If your hospital stay extends beyond 90 days, you enter a "lifetime reserve" period where you can use up to 60 additional days of coverage, paying a higher daily coinsurance.

If you are discharged and readmitted to the hospital more than 60 days later, a new benefit period begins and you pay the deductible again. This structure means the deductible is not annual — it resets based on your hospital use, not the calendar year.

Part B Deductible: Doctor Visits and Outpatient Services

Part B covers doctor visits, outpatient services, medical equipment, and preventive care. The Part B deductible for 2024 is $240 per year. You pay this deductible once each calendar year, and it applies to all Part B services combined.

Once you have paid $240 toward Part B services in a calendar year, Medicare begins to pay its share. For most services, Medicare then covers 80 percent of the approved amount, and you pay the remaining 20 percent as coinsurance. Some preventive services, such as annual wellness visits and certain screenings, have no deductible and no coinsurance — Medicare covers them in full.

The Part B deductible resets on January 1 each year. If you reach the deductible in November, you will need to pay another $240 deductible starting January 1 of the next year.

Part D Deductible: Prescription Drugs

Part D covers prescription drugs through private insurance plans that contract with Medicare. Each Part D plan sets its own deductible, but the maximum deductible allowed in 2024 is $505. 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 applies only to prescription drugs, not to medical services. Once you have paid your plan's deductible, you move into the "initial coverage" phase, where you pay a copayment or coinsurance for each prescription. The deductible resets on January 1 each year.

Part D also includes a coverage gap (sometimes called the "donut hole") that begins after you and your plan have spent a certain amount on drugs. In the gap, you pay a higher share of drug costs until you reach catastrophic coverage. The deductible does not explore in the gap — you pay based on the gap cost-sharing rules instead.

Deductibles in Medicare Advantage Plans

Medicare Advantage (Part C) plans are run by private insurers and must cover everything Original Medicare covers, but they can structure deductibles differently. Some Medicare Advantage plans have no deductible. Others have a single deductible that applies to all services, or separate deductibles for different types of care (such as one for hospital stays and another for doctor visits).

The deductible structure varies widely by plan and by region. When comparing Medicare Advantage plans, check the deductible amount, what services it applies to, and whether it resets annually or per benefit period. A plan with a lower premium might have a higher deductible, so compare the total out-of-pocket costs, not just the monthly premium.

Deductibles in Medigap Plans

Medigap (supplemental insurance) plans are designed to pay some or all of the costs that Original Medicare does not cover, such as 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 then reimburse you for those amounts.

Different Medigap plans (labeled A through N) cover different combinations of costs. Some plans cover the Part B deductible in full, while others do not. Plan G, for example, covers the Part B deductible, but Plan K covers only 50 percent of it. Review your specific Medigap plan documents to see which deductibles and cost-sharing amounts your plan covers.

How Deductibles Affect Your Total Out-of-Pocket Costs

Deductibles are only one part of what you pay. After you meet your deductible, you typically still pay coinsurance (a percentage of the cost) or copayments (a fixed dollar amount per visit or service). For example, after you pay the Part B deductible of $240, you pay 20 percent coinsurance for most services, and Medicare pays 80 percent.

Your total out-of-pocket costs depend on how much healthcare you use. If you rarely see a doctor, you may only pay the deductible and nothing more. If you have a chronic condition or need frequent care, you will pay the deductible plus coinsurance or copayments throughout the year. Medicare Advantage plans have an out-of-pocket maximum (in 2024, typically $7,550 for in-network care), meaning once you reach that limit, Medicare covers the rest of your approved care for the year. Original Medicare does not have an out-of-pocket maximum.

Frequently Asked Questions

Do I have to pay the Part B deductible for preventive services?

No. Preventive services covered by Medicare, such as annual wellness visits, cancer screenings, and vaccinations, do not have a deductible. You pay nothing for these services. However, if your visit includes treatment for a condition beyond prevention, that portion may be subject to the deductible and coinsurance.

What happens if I switch Medicare plans during the year?

If you switch from Original Medicare to a Medicare Advantage plan mid-year, any deductible you already paid to Original Medicare does not transfer. Your new Medicare Advantage plan has its own deductible structure, and you may need to pay a new deductible depending on the plan's rules and the timing of your switch.

Can I use my Health Savings Account to pay my Medicare deductible?

Once you enroll in Medicare, you can no longer contribute to a Health Savings Account. However, you can withdraw money from an existing HSA to pay Medicare premiums, deductibles, and other may have access to medical expenses without penalty, though you will owe income tax on the withdrawal.

Does my deductible count toward my out-of-pocket maximum?

In Medicare Advantage plans, yes — deductibles count toward your out-of-pocket maximum. In Original Medicare, there is no out-of-pocket maximum, so deductibles and coinsurance can add up indefinitely, which is one reason many people purchase Medigap coverage.

What if I have both Medicare and employer health insurance?

If you have employer coverage and Medicare, the plans coordinate benefits. Usually, Medicare is primary if you are over 65, and your employer plan is secondary. Your employer plan may cover some or all of your Medicare deductibles and coinsurance, depending on the plan design.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.