The 2024 Medicare Deductible Amounts

Medicare Part A (hospital insurance) has a deductible of $1,632 per benefit period in 2024. A benefit period starts when you enter a hospital and ends 60 days after you leave without receiving inpatient care. If you go back into the hospital after that 60-day gap, a new benefit period begins and you pay the deductible again.

Medicare Part B (medical insurance) has a deductible of $240 per year in 2024. You pay this once each calendar year before Medicare starts to pay its share of covered services like doctor visits, lab tests, and outpatient procedures.

Part D (prescription drug coverage) deductibles vary by plan. Most plans have a deductible between $0 and $545 in 2024, depending on which plan you choose. Some plans have no deductible at all. You can see the exact deductible for each plan available in your area during the annual enrollment period.

Key Takeaways

  • Part A deductible is $1,632 per benefit period, not per year, so you may pay it more than once if you have multiple hospital stays.
  • Part B deductible is $240 per calendar year and applies before Medicare covers doctor visits and outpatient services.
  • Part D deductibles range from $0 to $545 depending on your plan choice, and you can compare them during open enrollment.
  • These amounts change each year, so check the official Medicare website or your plan documents to confirm the current year's deductible.

How Part A Deductible Works in Multiple Hospital Stays

The Part A deductible resets with each new benefit period. If you are hospitalized, discharged, and then readmitted within 60 days of leaving the hospital, you do not pay a second deductible — you are still in the same benefit period. But if 60 days pass without inpatient hospital care, the benefit period ends and a new one begins, which means you pay the deductible again.

This matters most for people with chronic conditions who may need multiple hospital stays in a year. Someone admitted in January, discharged in February, and then admitted again in April would pay the deductible twice because more than 60 days passed between stays. The same person admitted in January and readmitted in February would pay it only once.

What You Pay After Meeting the Part B Deductible

Once you meet the $240 Part B deductible in a calendar year, Medicare covers 80 percent of the approved amount for most services. You pay the remaining 20 percent, called coinsurance. This continues for the rest of the year, even if your costs add up to thousands of dollars.

If you have a Medigap (supplemental insurance) or Medicare Advantage plan, that plan may cover some or all of your coinsurance. Medigap plans are sold by private insurers and designed to fill gaps in Original Medicare. Medicare Advantage plans are an alternative to Original Medicare and often have lower out-of-pocket costs but include network restrictions.

Part D Deductible and How It Affects Your Prescriptions

Part D deductibles explore to your prescription drug coverage. If your plan has a $250 deductible, you pay the full cost of your medications until you have spent $250 out of pocket. After that, Medicare and your plan share the cost depending on which coverage stage you are in.

Some plans waive the deductible for certain drugs, especially generic medications or drugs for chronic conditions like diabetes or heart disease. When you compare plans during open enrollment, check not just the deductible amount but also which drugs are covered without a deductible. A plan with a higher deductible might cost you less overall if your regular medications are exempt.

Deductibles in Medicare Advantage Plans

Medicare Advantage plans (Part C) set their own deductibles, which can be lower, higher, or the same as Original Medicare. Some plans have no deductible at all. The trade-off is that these plans usually require you to use doctors and hospitals in their network, and they may require prior authorization before certain procedures.

When comparing Medicare Advantage plans, look at the total out-of-pocket maximum as well as the deductible. The out-of-pocket maximum is the most you will pay in a year for covered services. Once you reach it, the plan covers 100 percent of remaining costs. Original Medicare has no out-of-pocket maximum, which is why many people add Medigap coverage.

How Deductibles Change Year to Year

Medicare deductibles are adjusted each year based on inflation and changes in healthcare costs. The Part A deductible typically increases by a larger amount than Part B because hospital costs rise faster. Part D deductibles are capped by law at $545, but the actual deductible for your plan may be lower.

The Centers for Medicare & Medicaid Services (CMS) announces the new deductible amounts in the fall, usually in September or October. If you are on Original Medicare, you will see the new amounts on your Medicare Summary Notice, which arrives in the mail each year. If you have a Medicare Advantage or Part D plan, your plan will send you a new Summary of Benefits and Coverage document showing the updated deductible.

Where to Find Your Specific Deductible

Your exact deductible depends on which plan you have. If you have Original Medicare (Parts A and B), your deductibles are the standard amounts set by Medicare. If you have a Medicare Advantage plan or Part D plan, your deductible is listed in your plan documents, usually called the Summary of Benefits and Coverage or the Evidence of Coverage.

You can also call your plan directly or log into your plan's website to confirm your deductible. The official Medicare website (Medicare.gov) has a plan comparison tool where you can enter your information and see the deductible for each plan available in your area. If you need help understanding your deductible or comparing plans, you can contact your State Health Insurance information Program (SHIP), which offers free counseling.

Frequently Asked Questions

Do I pay the Part A deductible if I am admitted to a skilled nursing facility?

Yes, if you are admitted to a skilled nursing facility directly from a hospital stay, you pay the Part A deductible as part of that same benefit period. The deductible covers both the hospital stay and the nursing facility stay together. If you are admitted to a nursing facility without a prior hospital stay, Part A does not cover it.

What happens if I have both Original Medicare and a Medicare Advantage plan?

You should not have both at the same time. If you enroll in a Medicare Advantage plan, your Original Medicare coverage ends. If you later switch back to Original Medicare, you can do so during the annual enrollment period or if you have a may have access to life event like moving out of your plan's service area.

Can I change my Part D plan to get a lower deductible?

Yes, during the annual open enrollment period from October 15 to December 7, you can switch to a different Part D plan with a lower deductible. You can also switch if you have a may have access to life event like losing other drug coverage or moving to a new state.

Does my Medigap plan cover the Part A and Part B deductibles?

Some Medigap plans cover the Part A deductible, and some cover the Part B deductible, but it depends on which plan letter (A through N) you have. Plan G, for example, covers the Part B deductible. Check your Medigap plan documents or call your insurer to see what your plan covers.