Medicare Costs [Updated 2024]

Many people are shocked to learn that, even though you paid into Medicare every week from your payroll taxes, you still have to pay for Medicare. For 2024, the costs for Medicare are listed below:

Medicare Part A

Cost: $0/month

As long as you worked 40 quarters (10 years) in the United States, you won’t have to pay an additional premium for Medicare Part A.

The Part A deductible for 2024 is $1,632 per benefit period which means that you could have to pay that charge more than once per calendar year.

Once you deductible is paid, you’ll have no co-pays for Part A for your first 60 days as an inpatient in the hospital. Starting on day 61, your co-pay is $408 per day for days 61-90, and then $816 per day for your lifetime reserve days which cover days 91-150.

You only get 60 lifetime reserve days to use during your lifetime.

Medicare Part B

Cost: $174.70/month

The minimum monthly premium for Part B in 2024 is $174.70/month. However, if you made more than $103,000 in tax year 2022 as an individual or double for couples filing taxes jointly, you may have to pay up to $594.00/month for your Medicare due to the IRMAA adjustment for high earners.

Medicare Doesn’t Have To Be So Hard…

Schedule your FREE appointment to have our team answer your questions and make Medicare easy.

Medicare Part C - Medicare Advantage

Cost: Typically low (or No) monthly premium

The cost for Medicare Advantage plans depends on which one you select. In most areas, you can find a quality Medicare Advantage plan for low or no monthly premium, but this is heavily dependent on your prescriptions, whether you want an HMO or PPO, and many other factors. Note that this monthly payment is in addition to your Part B premium.

For more information on Medicare Advantage Plans, see the page Medicare Advantage Plans.

For a 65 year old female non-smoker in Indiana, it will cost roughly $110/mo for a Plan G or $90/mo for a Plan N. This premium is in addition to your Part B premium.

Medicare Costs

Medicare Part B 2023 GOOD NEWS!

0:40

The Social Security Administration announced an unprecedented cost of living increase for 2023.

0:57

The rules for applying for Medicare after the month you turn 65 change for 2023 (in a very good way)

0:45

Medicare Part D - Prescription Drug Plans

2024 Part D national base premium — $34.70

The monthly premium for your Part D Prescription drug plan is dependent upon which prescriptions you are taking. Some plans might be as low as $7/month, but if they don’t cover your medications, they will end up costing you way, way more than a $20/month plan that does cover them. On average, you can expect to pay around $20/month for your prescription drug plan.

For more information on Prescription Drug Plans, see the page Medicare Part D.

Medicare Supplements

Cost: The cost of a Medicare Supplement plan depends on several factors:

Coverage: Higher coverage levels plans will cost more than lower coverage level plans.
Location: Certain states (FL, NY, CA) have high prices than others.
Gender: Men have higher prices than Women.
Tobacco Usage: Tobacco users have higher prices than non-tobacco users.
Age: An 80 year old will pay more than a 65 year old.
Company: Some companies change more than others for exactly the same coverage.

For more information on Medicare Supplement Plans, see the page Medicare Supplements.

FAQs

Why is my first Medicare bill so high?

If you are not taking social security benefits yet, the default payment method for Medicare is quarterly billing via mail. Your first bill is for 3 months of coverage, which is why it is so large!

It is a good idea to set up “Medicare Easy Pay” through your Medicare.gov account. This will allow your payment to come directly out of your bank account each month.

Can I get Medicare Part B for free?

If your income is below a certain threshold, you may qualify for the government to pay for your Part B premium. Check with your state’s Medicaid office to see if you qualify.

Is paying into Medicare optional?

Every paycheck, part of your FICA payroll taxes go towards Medicare, so no, you cannot opt out of contributing to Medicare.

Exceptions may exist for government workers and railroad retirees who have separate retirement systems.

What Payment Methods Are Accepted?

Original Medicare – Automatically taken out of your Social Security check. If you’re not receiving SS yet, the default setting is quarterly bill. You can set this to be taken out of your bank account monthly by submitting the Medicare EZ Pay form.

Medicare Advantage / Drug Plans – Monthly premium can be deducted from SS or from bank account. No credit cards accepted.

Medicare Supplements – Monthly bank draft is the preferred method.

Do I Still Have to Pay For Part B If I Get Supplemental Coverage?

Yes, you must continue to pay your Part B premium. Your Medicare Supplement or Advantage plan will not work if you don’t keep your Medicare Part B.

Sylvia Gordon, aka Medicare Mama^®, is an expert on all things Medicare and Social Security. She is the 2nd Generation here at The Medicare Family and has served on the advisory boards of major insurance companies like UnitedHealthcare^®, Cigna, and Anthem. In her free time, she can be found taking care of her animals (dogs, goats, peacocks, chickens), and reading a good book. Learn More.

5-Star Rated

“This was the best experience I’ve ever had dealing with Medicare information.” – Darrell P.

Read Our Reviews (2,500+)

About Us

For 40 years, our family has been helping seniors understand their Medicare benefits and find the best plan for their unique situation – the best part? Our service is always 100% free to you!

Wouldn’t this be

Easier on video?

Reading about Medicare can be confusing…Thats why we took all the important parts and put them into an easy, free video.

Get Our FREE Medicare & Social Security Cheat Sheet

Download this FREE printable cheat sheet to get the information you need in one place. You’ll never worry about forgetting a number, date, or deadline again. UPDATED FOR 2024!