Speak with a Licensed Insurance Agent

Close this search box.
Close this search box.

Medicare Costs

Table of Contents

Summary: It is important to understand Medicare costs when choosing your healthcare coverage; premiums, deductibles, copayments, and coinsurance can all impact your budget. In this article, we’ll break down the cost of Medicare in 2024. Estimated Read Time: 5 min

How Much Does Medicare Cost?

Understanding Medicare costs can help you better budget your healthcare expenses. Your Medicare costs will be determined by your coverage choices and differ from person to person. Medicare costs include monthly premiums, annual deductibles, copayments, coinsurance, and more. In most cases, these costs will need to be paid out-of-pocket.

Since there is no maximum out-of-pocket limit for Medicare, it is crucial to consider your monthly and annual budget when making decisions regarding your Medicare coverage.

2024 Medicare Costs Summary

Medicare costs change annually. In the below chart, you’ll find a basic summary of Medicare costs for 2023 and 2024 .

Medicare Coverage2024 Monthly Premium2024 Deductible2023 Monthly Premium2023 Deductible
Part A$0 (for most people)$1,632 for each inpatient benefit period$0 (for most people)$1,600 for each inpatient benefit period
Part B$174.70 (or higher, depending on income)$240$164.90 (or higher, depending on income)$226
Part CVaries by planVaries by planVaries by planVaries by plan
Part DVaries by plan (and income)Varies by planVaries by plan (and income)Varies by plan

A Medicare Premium is a monthly amount that you pay for your coverage. Premium amounts can change yearly (except for $0 Part A premiums). You qualify for a $0 Part A premium if you or your spouse paid Medicare taxes while working for at least ten years. If your individual income is over $103,000, you can expect to pay a higher premium for your Medicare Parts B and D (IRMAA).

Remember: To enroll in a Medicare Advantage plan (Medicare Part C), you must have both Medicare Part A and Part B. You will continue to pay your Medicare Part B premium in addition to your premium, deductible, and other out-of-pocket costs for your Part C plan.

A Medicare Deductible is an annual amount that you have to pay before Medicare (or your plan) begins paying for your covered services. Medicare Part A is an exception since you must pay the deductible per inpatient hospital benefit period. Since there is no limit to the number of benefit periods you can have in a year, you may pay your Medicare Part A deductible more than once in a calendar year.

Medicare copayments and coinsurance are other out-of-pocket costs you will be responsible for paying when enrolled in Medicare. These two terms may seem similar, but it’s essential to understand the difference.

Copayments are set amounts that you’ll pay out-of-pocket for a Medicare-covered service. For example, if you’re in a skilled nursing facility for 30 days, your Medicare Part A copayment will be $204 each day after your 20th day.

Coinsurance is a percentage of the cost that you pay. For Medicare Part B, your coinsurance will typically be 20% of the price for each Medicare-covered service.

Late Enrollment Penalties can occur if you don’t enroll in Medicare within your Initial Enrollment Period. These penalties are additional costs that are added to your monthly premiums. Late enrollment penalties are not a one-time fee and typically last for as long as you have coverage.

For example, if you wait to sign up for Medicare Part B and don’t have creditable coverage (health insurance through your employer, for example), you’ll pay an extra 10% for each year you didn’t enroll. So, if you became eligible for Medicare in 2021, didn’t have creditable coverage, and waited until 2023 to enroll, you’ll pay a 20% late enrollment penalty.

Cost of Original Medicare

With Original Medicare, your costs will include your Medicare Part A and Part B premiums, deductibles, coinsurance, and copayments. For many, the total monthly cost for Original Medicare coverage will be $174.70 in 2024. If your individual annual income is over $103,000, your Medicare Part B premium could be higher. If you haven’t paid Medicare taxes while working, your Medicare Part A premium will be higher. These factors can both affect your cost of Original Medicare.

Under Original Medicare, your 2024 annual deductible will be $240. This deductible is for your Part B coverage. Unlike Medicare Part B, Medicare Part A’s deductible is not annual. Medicare Part A’s deductible is $1,632 per inpatient benefit period. The inpatient benefit period begins the day you’re admitted and ends when you haven’t received inpatient hospital care for 60 days. Since you can have multiple benefit periods within the same year, you can pay your Medicare Part A deductible more than once in a calendar year.

You’ll need to pay your coinsurance and copayments out-of-pocket under Original Medicare. For most Medicare Part B services and supplies, you’ll pay a 20% coinsurance. Medicare Part A copayment amounts will depend on how long you stay at a hospital or skilled nursing facility.

If you have Original Medicare, you can enroll in a Medicare Supplement Plan and/or a Medicare Part D prescription drug plan. Both additional coverage options have out-of-pocket costs that vary by plan, carrier, and location.

Is Medicare Free?

Medicare is not free for eligible individuals. Though many people qualify for premium-free Medicare Part A, you will still be responsible for paying your deductible, copayments, and coinsurance. Assistance is available for those struggling to pay for their Medicare coverage, such as Medicare Savings Programs for Original Medicare or Extra Help for drug plans.

How to Get Help with Medicare Costs

In addition to state assistance to help cover your Medicare costs, Medicare Supplement Plans are available that can help with Medicare Part A and Part B deductibles, copayments, and coinsurance. You are required to have both Medicare Part A and Medicare Part B before enrolling in a Medicare Supplement Plan. Multiple Medigap policies are available, allowing you to choose the one that best meets your needs.


What Does Medicare Cost, Medicare. Accessed July 2023


2023 Medicare Costs, Medicare. Accessed July 2023.


Thomas Liquori

Thomas Liquori

Ashlee Zareczny

Ashlee Zareczny

Compliance Supervisor and Licensed Medicare Agent
Ashlee Zareczny is the Compliance Supervisor for ApplyforMedicare. As a licensed Medicare agent in all 50 states, she is dedicated to educating those eligible for Medicare by providing the necessary resources and tools. Additionally, Ashlee trains new and tenured Medicare agents on CMS compliance guidelines. Ashlee is a Medicare expert who specializes in Medicare Supplement, Medicare Advantage, and Medicare Part D education.