The 2024 Medicare premiums at a glance

Medicare Part B (medical insurance) costs $164.90 per month for most people in 2024. Part D (prescription drug coverage) varies by plan but starts around $7 to $10 monthly for basic plans, though many people pay more depending on which plan they choose. Part A (hospital insurance) has no monthly premium for most people who paid Medicare taxes while working.

These amounts are what Medicare itself charges. Your actual out-of-pocket cost may be lower if you receive a subsidy based on your income, or higher if you have higher income and pay an Income-Related Monthly Adjustment Amount (IRMAA). The income thresholds that trigger IRMAA are set each year and vary by filing status.

If you're still working and covered by an employer plan, you may not need to pay these premiums yet. If you're on Medicaid, your state may pay your Part B premium. If you have a Medigap or Medicare Advantage plan, you still pay the Part B premium to Medicare, then pay your plan's separate premium on top.

Key Takeaways

  • Part B costs $164.90 per month in 2024 for most beneficiaries, but you pay more if your income from two years ago exceeded certain thresholds.
  • Part D premiums vary widely by plan and region, so comparing plans during open enrollment can lower your drug costs significantly.
  • Part A has no monthly premium for most people, but you pay a deductible when you enter the hospital.
  • Your actual premium depends on your income, filing status, and whether you're receiving other benefits like Medicaid or employer coverage.
  • Premium amounts change each year, so it's worth reviewing your coverage during the annual open enrollment period in the fall.

Part B premium and how income affects what you pay

The standard Part B premium for 2024 is $164.90 per month. However, if your modified adjusted gross income (MAGI) from two years ago was above a certain level, you pay a higher amount called IRMAA. For 2024, the income thresholds depend on your tax filing status: single filers, married filing jointly, married filing separately, and head of household each have different cutoff points.

IRMAA brackets increase in steps, so your premium can jump significantly if your income crosses a threshold. For example, a single person with MAGI over $103,000 pays more than the standard premium, and the amount increases further at higher income levels. If you're married filing jointly, the threshold is higher — currently around $206,000 — but the premium increases explore to both spouses if either of you exceeds it.

If your income drops due to retirement, job loss, or divorce, you can request that Social Security recalculate your IRMAA using your current year's income instead of the two-year-old figure. This is called a life-changing event appeal, and you must file it within 60 days of the event. Social Security will ask for documentation like a tax return or a letter from your employer.

Part D prescription drug coverage premiums

Part D premiums vary widely depending on which plan you choose and where you live. In 2024, basic plans may cost as little as $7 to $10 per month, while more comprehensive plans with lower copays can cost $50, $100, or more monthly. The same insurance company may offer multiple Part D plans at different price points in your area.

Your actual out-of-pocket drug costs also depend on which drugs are on your plan's formulary (the list of covered medications), what tier they're on, and whether you hit the coverage gap. The coverage gap, sometimes called the "donut hole," is a range of drug costs where you pay a higher percentage of the cost. In 2024, once you and your plan have spent a certain amount on drugs, you enter this gap until your out-of-pocket spending reaches a limit.

If your income is low enough to may have access to for the Low-Income Subsidy (LIS) program, you may pay little or nothing for Part D premiums and have reduced copays. LIS is a federal program separate from Medicaid, and may be able to access is based on your income and resources. You can contact Social Security or your local Medicaid office to learn whether you may have access to.

Part A hospital insurance and deductibles

Most people pay no monthly premium for Part A because they or their spouse paid Medicare taxes for at least 10 years while working. However, Part A does have a deductible you pay when you're admitted to the hospital. In 2024, the Part A deductible is $1,632 per benefit period. A benefit period begins when you enter the hospital and ends 60 days after you leave without receiving any inpatient care.

If you don't have enough work history to may have access to for premium-free Part A, you can buy it. The monthly premium for Part A in 2024 is either $278 or $505 per month, depending on how many quarters of Medicare tax you paid. A quarter is roughly three months of work covered by Medicare taxes.

Part A also covers skilled nursing facility care, hospice, and some home health services, each with its own cost structure. After you pay the hospital deductible, you pay a daily copay for days 61 through 90 of a hospital stay, and an even higher daily copay for days 91 and beyond (up to a lifetime reserve of 60 days).

Medigap and Medicare Advantage plan premiums

If you choose a Medigap plan (also called Supplemental Insurance), you pay both the standard Medicare Part B premium to Medicare and a separate Medigap premium to the insurance company offering the plan. Medigap premiums vary by plan type, insurance company, your age, and your location. A basic Medigap plan might cost $100 to $150 per month, while more comprehensive plans can cost $200 to $400 or more.

If you choose a Medicare Advantage plan instead of Original Medicare, you still pay the Part B premium to Medicare, but you may pay a lower or zero premium to the Advantage plan itself. Many Medicare Advantage plans charge $0 monthly premium, though you'll pay copays and coinsurance when you use services. Some Advantage plans charge a premium of $50 to $200 per month depending on the coverage level and your location.

Both Medigap and Medicare Advantage plans may also include Part D drug coverage, or you may need to buy Part D separately. Review the plan documents to see what's included and what you'll pay out of pocket for doctor visits, hospital stays, and prescriptions.

When premiums change and how to review your coverage

Medicare premiums are set each year and announced in the fall. Part B and Part A premiums typically change in January, while Part D premiums can vary by plan and may change at different times. Social Security sends a notice in December showing your new premium amount for the coming year, though the exact timing depends on how you receive your benefits.

If you disagree with a premium increase or believe it's based on outdated income information, you have the right to appeal. For IRMAA appeals, you must act within 60 days of receiving the notice. For other premium disputes, contact Medicare directly at 1-800-MEDICARE or visit Medicare.gov to file a complaint or request a review.

The annual open enrollment period for Medicare runs from October 15 to December 7 each year. During this time, you can switch from Original Medicare to Medicare Advantage, change your Medigap plan, or switch Part D plans. Reviewing your options each year can help you find a plan that matches your current health needs and budget, since premiums and coverage change annually.

Frequently Asked Questions

Why did my Part B premium go up so much from last year?

Part B premiums increase each year based on projected Medicare costs. If your income increased, you may also be paying IRMAA, which adds to the standard premium. If you believe the increase is based on outdated income, you can request that Social Security recalculate using your current year's income if you've had a life-changing event like retirement or job loss.

Do I have to pay Part D if I don't take many medications?

You're not required to buy Part D when you first turn 65 if you have other creditable drug coverage (like from an employer or union). However, if you go without Part D for more than 63 days after your coverage ends, you'll pay a late enrollment penalty for as long as you have Medicare. The penalty is about 1% of the national average Part D premium per month of delay.

What happens to my premiums if I go back to work?

If you're still working and earning income, your MAGI increases, which may trigger or increase your IRMAA. Your Part B premium could go up as a result. When you retire or your income drops, you can request that Social Security recalculate your IRMAA using your current income, which may lower your premium.

Can I get help paying my Medicare premiums?

If your income is low, you may may have access to for the Low-Income Subsidy (LIS) program for Part D, or for Medicaid, which can pay your Part B premium. Contact your state Medicaid office or Social Security to learn about programs in your area. Some nonprofits also offer premium information, though availability varies by location and income level.

Are there any months when I don't have to pay my Part B premium?

No. Part B premiums are charged every month you're enrolled, including months when you don't use any Medicare services. The only way to stop paying is to disenroll from Part B, which you can do during the annual open enrollment period or during a may have access to life event, though disenrolling may affect your future coverage options.