Medicare Part B costs you a monthly premium, an annual deductible, and a percentage of most doctor visits and services

Medicare Part B covers doctor visits, outpatient care, lab tests, and medical equipment. You pay for it three ways: a monthly premium taken from your Social Security check, a yearly deductible you must meet before Medicare starts paying its share, and coinsurance (usually 20 percent) on most services after you meet the deductible.

The monthly premium for 2024 is $164.90 for most people, though it can be higher if your income was above a certain level two years ago. The annual deductible for 2024 is $240. After you pay that deductible, Medicare pays 80 percent of approved charges and you pay 20 percent.

These amounts change each year. The Centers for Medicare & Medicaid Services (CMS) announces new premiums and deductibles in the fall for the following year, so check your Medicare materials or call 1-800-MEDICARE if you want to know the current figures.

Key Takeaways

  • The 2024 Part B monthly premium is $164.90 for most beneficiaries, deducted automatically from your Social Security payment.
  • You pay a $240 annual deductible in 2024 before Medicare begins to cover its share of doctor and outpatient services.
  • After meeting your deductible, you typically pay 20 percent coinsurance on doctor visits, lab work, imaging, and other Part B services.
  • Income-related monthly adjustment amounts (IRMAA) can raise your premium if your income exceeded certain thresholds in the prior year.
  • Premiums and deductibles increase most years, so review your costs annually when CMS releases updated figures in the fall.

How the monthly premium works

Your Part B premium is deducted directly from your Social Security benefit each month. If you are not yet collecting Social Security, Medicare will bill you quarterly by mail. The standard premium for 2024 is $164.90, but your actual premium may be different.

If your modified adjusted gross income (MAGI) from two years ago was above $97,000 as a single filer or $194,000 as a married couple filing jointly, you pay an income-related monthly adjustment amount (IRMAA) on top of the standard premium. This surcharge can range from about $70 to $560 per month depending on your income bracket. Medicare uses your tax return from two years prior, so 2024 premiums are based on your 2022 income.

You can request that Medicare recalculate your IRMAA if your income dropped significantly due to retirement, job loss, or death of a spouse. You must file a Life-Changing Event form with Social Security within 60 days of the event.

The annual deductible and coinsurance

Before Medicare pays anything toward Part B services, you must pay the annual deductible out of your own pocket. For 2024, that deductible is $240. Once you have paid $240 in approved charges, Medicare's cost-sharing kicks in.

After you meet the deductible, Medicare covers 80 percent of the approved amount for most Part B services, and you pay the remaining 20 percent. This 20 percent is called coinsurance. For example, if a doctor visit is approved at $150, Medicare pays $120 and you pay $30.

The deductible applies once per calendar year, from January through December. If you reach it in March, you do not pay another deductible until January of the next year. Some services, like preventive care visits and screenings, have no deductible and no coinsurance — Medicare covers them at 100 percent.

What Part B does and does not cover

Part B covers doctor office visits, urgent care, emergency room visits, outpatient surgery, lab tests, X-rays and imaging, physical therapy, and durable medical equipment like wheelchairs and oxygen. It also covers preventive services such as annual wellness visits, cancer screenings, and vaccinations.

Part B does not cover dental care, vision exams for glasses or contacts, hearing aids, or long-term custodial care in a nursing home. Prescription drugs are covered under Part D, not Part B. If you need these services, you may want to look into supplemental coverage or Medicare Advantage plans, which bundle Part A, B, and D together with additional benefits.

Income-related premiums (IRMAA) explained

If you earned more than a certain amount in the prior year, you will pay a higher Part B premium. For 2024, the income thresholds are $97,000 for single filers and $194,000 for married couples filing jointly. These thresholds do not change year to year, but the surcharge amounts do.

The surcharge is calculated in brackets. Someone with a MAGI of $100,000 pays a smaller surcharge than someone with a MAGI of $150,000. Medicare calculates this automatically using your tax return, so you do not have to do anything unless your income changed significantly.

If you had a major life change — retirement, job loss, death of a spouse, or divorce — you can request a recalculation. Contact Social Security at 1-800-772-1213 and ask to file a Life-Changing Event form. You must do this within 60 days of the event for it to take effect that same year.

How costs add up over the year

Your total Part B cost in a given year depends on how much medical care you use. If you see your doctor once and have no lab work, you might pay only the premium ($1,979 for the year in 2024) plus the $240 deductible. If you have multiple visits, imaging, or lab tests, your coinsurance adds up quickly.

For example, a person who pays the standard premium, meets the deductible, and has $2,000 in approved Part B services would pay: $1,979 in premiums plus $240 deductible plus $400 in coinsurance (20 percent of $2,000), totaling $2,619 out of pocket. Someone with higher income paying IRMAA and more medical services could pay significantly more.

Many seniors purchase a Medigap (supplemental insurance) policy to cover the deductible and coinsurance. Medigap premiums vary by plan and location, but they can offset your out-of-pocket costs if you use medical services regularly.

When costs change and how to stay informed

Medicare Part B premiums and deductibles change annually. CMS announces the new amounts in October for the following year. You will receive a notice in the mail explaining your 2025 costs by December 2024.

If you disagree with a premium increase or believe your IRMAA was calculated incorrectly, you have the right to appeal. You can also request a recalculation if your income dropped. Contact Medicare at 1-800-MEDICARE or visit Medicare.gov to review your current costs and appeal options.

Some people may have access to for programs that help pay Part B premiums. The may have access to Individual (QI) program and Specified Low-Income Medicare Beneficiary (SLMB) program are state-run and help low-income seniors pay premiums and deductibles. Your state Medicaid office can tell you if you meet the income limits.

Frequently Asked Questions

Can I delay enrolling in Part B without paying a penalty?

If you are still working and covered by your employer's health plan, you may be able to delay Part B without penalty. You must have creditable coverage through your employer. When you retire, you have eight months to enroll without a penalty. If you miss this window, you pay a permanent 10 percent penalty on your premium for each year you were may be able to access but did not enroll.

What happens if I cannot afford my Part B premium?

Several programs help low-income seniors pay Part B premiums. The may have access to Individual (QI) program pays your premium directly to Medicare. The Specified Low-Income Medicare Beneficiary (SLMB) program also covers premiums. Contact your state Medicaid office to learn the income limits and how the process works. You may also may have access to for Extra Help if you take Part D prescription drug coverage.

Does Part B cover preventive care at no cost?

Yes. Preventive services like annual wellness visits, cancer screenings, vaccinations, and certain lab tests are covered at 100 percent with no deductible or coinsurance. However, if your doctor finds a problem during a preventive visit and performs additional testing or treatment, those services may be subject to your deductible and coinsurance.

What is the difference between Part B coinsurance and a copay?

Part B uses coinsurance, which means you pay a percentage (usually 20 percent) of the approved charge. A copay is a fixed dollar amount you pay per visit. Medicare Advantage plans often use copays instead of coinsurance, so your costs may be more predictable with those plans.

Do my Part B costs count toward the out-of-pocket maximum?

Original Medicare (Part A and B) does not have an out-of-pocket maximum, so your costs can be unlimited. Medicare Advantage plans do have an out-of-pocket maximum, after which the plan covers 100 percent of in-network services for the rest of the year. This is one reason some seniors choose Advantage plans over Original Medicare with a Medigap supplement.