Medicare has different deductibles for each part, and they change every year

Medicare's deductible is the amount you pay out of your own pocket before Medicare starts to pay. The deductible amount depends on which part of Medicare you use — Part A (hospital), Part B (doctor visits and outpatient care), or Part D (prescription drugs). Each part has its own separate deductible, and none of them carry over to the others.

For 2024, the deductibles are: Part A is $1,676 per benefit period for hospital stays; Part B is $240 per year for doctor and outpatient services; and Part D varies by plan, typically between $35 and $505. These amounts are set by Medicare each January and do not change during the year.

If you have a Medigap or Medicare Advantage plan in addition to Original Medicare, your deductible may be different. Some Medigap plans cover the Part A and Part B deductibles entirely, while Medicare Advantage plans often have their own deductibles that replace the Original Medicare amounts.

Key Takeaways

  • Part A deductible for 2024 is $1,676 per benefit period, which covers up to 60 days in a hospital.
  • Part B deductible for 2024 is $240 per calendar year, and you pay it once before Medicare covers your doctor visits and outpatient services.
  • Part D deductible amounts vary by prescription drug plan you choose, and you must meet it before the plan begins to pay for most medications.
  • Medigap plans can reduce or eliminate your Part A and Part B deductibles, but they cost extra each month.
  • Medicare Advantage plans have their own deductibles that may be lower or higher than Original Medicare, depending on the plan.

How Part A deductible works for hospital stays

The Part A deductible applies when you are admitted to a hospital as an inpatient. Once you pay $1,676, Medicare covers the rest of your hospital bills for that stay — up to 60 days. If you stay longer than 60 days, you then pay a daily coinsurance amount ($419 per day in 2024) for days 61 through 90.

A benefit period is the way Medicare measures your hospital coverage. It begins the day you enter the hospital and ends 60 days after you leave. If you go back into the hospital more than 60 days after leaving, a new benefit period starts and you pay the deductible again. You can have multiple benefit periods in one year if you have separate hospital stays.

If you have a Medigap plan with coverage for Part A costs, the plan pays your $1,676 deductible, and you pay nothing out of pocket for the hospital stay itself. This is one reason many people buy Medigap coverage — to avoid large upfront hospital bills.

How Part B deductible works for doctor visits and outpatient care

The Part B deductible of $240 applies once per calendar year (January through December). You pay this amount toward any combination of doctor visits, lab tests, imaging, physical therapy, and other outpatient services covered by Part B. After you meet the $240, Medicare pays its share and you pay a coinsurance (usually 20% of the cost).

The deductible resets on January 1 each year. If you have not met it by December 31, the amount you paid does not roll over — you start fresh at $240 on January 1. This means if you have a doctor visit in late December and pay $100 toward the deductible, you will still owe $240 when you see a doctor in January.

Some services, like preventive care (annual wellness visits, screenings, vaccines), do not require you to pay the Part B deductible. Medicare covers these at no cost to you. Check with your doctor's office or Medicare.gov to confirm whether a specific service counts as preventive.

How Part D deductible works for prescription drugs

Part D deductibles vary by plan and are set by the insurance company offering the plan, not by Medicare. In 2024, most plans have a deductible between $35 and $505. Some plans have no deductible at all. You choose your Part D plan during the annual enrollment period (October 15 to December 7), and the deductible amount is listed in the plan's details.

Once you pay your plan's deductible, you then pay a copay or coinsurance for each prescription. The copay amount depends on which tier the drug is on — generic drugs usually cost less than brand-name drugs. After you and your plan spend a certain amount on drugs in a year (called the "out-of-pocket threshold"), you enter the catastrophic coverage phase and pay only a small amount per prescription for the rest of the year.

Your Part D deductible applies only to drugs that are not on the plan's preventive drug list. Some plans cover certain preventive medications (like statins for heart disease) without requiring you to pay the deductible first. Check your plan's formulary (the list of covered drugs) to see which medications are covered before you meet the deductible.

Deductibles in Medicare Advantage plans

Medicare Advantage plans (Part C) combine Part A, Part B, and usually Part D coverage into one plan run by a private insurance company. These plans have their own deductibles, which may be lower, higher, or the same as Original Medicare. Some Medicare Advantage plans have no deductible at all.

When you join a Medicare Advantage plan, you are no longer using Original Medicare, so the Part A and Part B deductibles described above do not explore. Instead, you pay whatever deductible your Medicare Advantage plan sets. This deductible typically applies to all services — hospital, doctor visits, and prescriptions — rather than having separate deductibles for each.

Medicare Advantage plans often have lower or zero deductibles to attract members, but they usually have higher copays and coinsurance amounts, and they limit which doctors and hospitals you can use. Compare the total out-of-pocket costs (deductible plus copays plus coinsurance) across plans during open enrollment to see which works best for your situation.

How Medigap plans affect your deductibles

Medigap (also called Medigap insurance) is supplemental coverage you buy from a private insurance company to help pay costs that Original Medicare does not cover. Medigap plans are labeled A through N, and each plan covers different amounts of your deductibles and coinsurance.

Plans G, F, and C cover your entire Part A deductible ($1,676), so you pay nothing when you go to the hospital. Plans G and F also cover your entire Part B deductible ($240). Other Medigap plans cover part of the deductible or none of it. Plan A, for example, covers neither the Part A nor Part B deductible.

Medigap plans do not cover Part D deductibles — you still pay the deductible set by your Part D plan. Medigap also does not explore if you have a Medicare Advantage plan; you can have either Medigap or Medicare Advantage, but not both at the same time.

When deductibles reset and what to track

Part B deductible resets on January 1 each year. Part A deductible resets when a new benefit period begins, which is 60 days after you leave the hospital. Part D deductible resets on January 1 each year. Keep track of what you have paid toward each deductible so you know when Medicare will start to pay its share.

Your Medicare Summary Notice (the bill you receive after a doctor visit or hospital stay) shows how much you have paid toward your Part A and Part B deductibles. Your Part D plan sends a separate statement showing your drug deductible progress. You can also check your deductible status anytime by logging into your Medicare.gov account or calling your plan.

If you are turning 65 and enrolling in Medicare for the first time, your deductibles start fresh on your effective date, not on January 1. If you enroll in January, your Part B deductible year runs January through December. If you enroll in June, your Part B deductible year still runs January through December, so you will only owe a portion of the $240 for that first year.

Questions to ask your doctor or Medicare plan

Before a procedure or prescription, ask your doctor's office or pharmacy: "Have I met my deductible yet this year?" and "What will I owe out of pocket for this service?" This helps you budget and avoid surprises. If you have a Medigap plan, ask whether the deductible is covered by your supplemental plan.

If you are choosing a Medicare Advantage or Part D plan during open enrollment, compare the deductibles side by side. A plan with a $0 deductible may have higher copays, so calculate the total you would likely pay for your regular medications and doctor visits across a few plans to see which is cheapest for your situation.

Frequently Asked Questions

Do I pay the Part A deductible every time I go to the hospital?

No. You pay it once per benefit period. A benefit period begins when you enter the hospital and ends 60 days after you leave. If you return to the hospital more than 60 days later, a new benefit period starts and you pay the deductible again. Multiple hospital stays within the same benefit period require only one deductible payment.

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

The deductible resets to $240 on January 1, and any amount you paid in the previous year does not carry over. You start fresh each calendar year. This is why it matters whether you have a Medigap plan that covers the deductible — without it, you pay $240 every year before Medicare covers your doctor visits.

Can I use my Medigap plan to cover my Part D deductible?

No. Medigap plans cover Part A and Part B deductibles and coinsurance, but they do not cover Part D prescription drug costs. You pay your Part D plan's deductible separately. If you want help with drug costs, you may be able to get extra help through Medicare's Low-Income Subsidy program.

If I switch Medicare Advantage plans in January, do I pay two deductibles?

No. Your deductible for the new plan starts when your coverage begins on January 1. You do not pay a deductible for the old plan after you switch. However, any out-of-pocket costs you paid under the old plan in December do not count toward the new plan's deductible.

Are preventive services subject to the deductible?

No. Medicare covers preventive services like annual wellness visits, cancer screenings, and certain vaccines with no deductible and no coinsurance. However, if your doctor finds a problem during a preventive visit and provides treatment for it, that treatment may be subject to your deductible and coinsurance.