2024 Medicare Costs

Learning Medicare >  Medicare Costs

Key Takeaways

  • Medicare premiums, deductibles, and other costs change every year, and typically get released every Fall for the next year. 
  • Medicare isn’t free! Most individuals must pay for Medicare Part B. Medicare Part A typically is free for most, but it can come with a charge depending on the circumstances. 
  • Most people pay $0 for their Medicare Part A, $174.70 for Medicare Part B, and $32 for Medicare Part D, but higher income earners will pay more for Part B and D coverage.

Contrary to some beliefs, Medicare isn’t entirely free. Many people are shocked to learn that even though they’ve had payroll taxes deducted from their paychecks for the last several decades, they still must pay for their Medicare insurance once they enroll.

These costs change every year, and typically are released in the fall for the following year. Read below for the costs in 2024.

Medicare Part A Costs

Part A Monthly Premium

Part A is free for those who worked a minimum of 40 quarters (10 Years) in their life and paid FICA taxes during that time. 

Alternatively, $505 per month for those who don’t have a work history (under 30 lifetime work quarters). For those who have partial work credits (30-39 quarters), the monthly premiums is $278 per month.

Part A Hospital Costs

Part A has a deductible of $1,632 per benefit period (not annually). This means an individual potentially could pay this multiple times per year if they have more than one hospital stay during the year. 

Once the 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 during your life. Once you use them, they’re gone forever. 

Skilled Nursing Facility Costs

For skilled nursing care, Medicare pays for the first 20 days in a skilled nursing facility. Starting day 21-100, the daily co-pay is $204. After day 100, Medicare covers no additional days so this will be a fully out-of-pocket expense.

Medicare Part B Costs

Part B Monthly Premium

Part B has a standard monthly cost of $174.70 in 2024, and this changes every year (surprise, it almost always increases). Everyone pays this unless they qualify for certain low-income programs provided by the Federal Government.

For those who are “high income earners”, those people will pay more for their Part B premium. This is called the IRMAA surcharge, or the “rich tax” as we like to call it. The higher your income, the more you’ll pay for your Part B premiums, up to $594 per month just for Part B!

For single tax filers, if your modified adjusted gross income was $103,000 or less, you’ll pay the standard $174.70 Part B premium.

For joint tax filers, if your modified adjusted gross income was $206,000 or less, you’ll pay the standard $174.70 Part B premium.

Part B Medical Costs

Part B has a annual deductible of $240. Once this $240 is paid out of pocket, the Part B coinsurance of 20% starts, meaning Part B will pay for 80% of all covered Part B medical costs, leaving you with the remaining 20% to pay for. 

Medicare Part C - Medicare Advantage Costs

The average nationwide monthly premium for Medicare Advantage or Part C is about $20. However, there are many Part C plans that come with a $0 monthly premium as well. Every area in the country have different Part C plans, and the prices fluctuate and vary per individual area.

With these lower or no cost Medicare Advantage plans, they come with copays and coinsurance for doctors visits, hospital stays, surgeries, drugs, etc so they’re not “free”, its just that the premium can be $0.

WIth a Part C plan, you still must pay the Part B premium as well!

Medicare Part D - Prescription Drug Plan Costs

The Part D national base premium in 2024 is $32.70. Think of this as the national average, however there are Part D plans that are much higher cost as well as much lower cost. It depends what area you live in, what prescription drugs you’re taking, and other factors to determine what premium you will pay and what your drugs will cost. 

On average, you can expect to pay $20-40 per month for your Part D drug plan if you’re not prescribed many higher cost drugs. 

Medicare Supplement / Medigap Costs

Medicare Supplement plans, also known as Medigap plans have a cost structure that varies. They base the costs on: 

  • Plan Letter: Higher coverage plans will cost more than lower coverage plan levels
  • Location: Certain states have higher premium than other states 
  • Gender: Men typically have higher premiums than women
  • Age: The older you are, the more you’ll pay in premiums
  • Tobacco use: Tobacco users will have higher premiums than non-tobacco users
  • Company: Some insurance companies charge more than other for the same coverage
As an example, a Plan G can range from $90-$300+ per month, and a Plan N can range from $70-$250+ per month. 

We can help you find the best, lowest cost Medicare plans that fit your needs and budget!

We help thousands of people every year navigate the massively complicated “Medicare Maze”. We’d be more than happy to lend our expertise and make this simple and easy for you so there’s no question that you made the best decision possible. Whether its doing an analysis on your current coverage versus Medicare, need help with enrollment, whatever it may be, we have your back!

To get our FREE expert assistance, call us at 717-942-8788 or click below to book an discovery call!

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Frequently Asked Questions

The amount for Medicare Part B that you will pay each month will vary based upon your income and the kind of coverage you choose.

An example would be the base Part B premium of $174.70/month (in 2024) plus a Medicare Supplement Plan G monthly premium of $125/month plus a Part D premium of $32/month – your total would be $331.70/month in premiums.

Understanding how much does Medicare pay for your healthcare services will be important. With this example you can be sure your additional out-of-pocket spending would be minimal as a plan G would pick up the majority of your out-of-pocket costs.

There are many different Medicare plan options to choose from so that you can have a monthly premium within your budget.

The amount for Medicare Part B that you will pay each month will vary based upon your income and the kind of coverage you choose.

An example would be the base Part B premium of $174.70/month (in 2024) plus a Medicare Supplement Plan G monthly premium of $125/month plus a Part D premium of $32/month – your total would be $331.70/month in premiums.

Understanding how much does Medicare pay for your healthcare services will be important. With this example you can be sure your additional out-of-pocket spending would be minimal as a plan G would pick up the majority of your out-of-pocket costs.

There are many different Medicare plan options to choose from so that you can have a monthly premium within your budget.

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 (Part B premium x 3 months) 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.

If your income and assets are below a certain threshold which varies by state, you may qualify for the government to pay for your Part A and/or Part B premium. 

Medicare premiums are tax deductible as part of your medical expenses. If your total medical expenses for the year exceed 10% of your Adjusted Gross Income, then you can deduct them. This essentially then excludes a portion of your income from being taxed.

Always consult a tax professional for guidance before deducting Medicare premiums or any other medical expenses.

Original Medicare A and B – Automatically taken out of your Social Security check. If you’re not receiving SS yet, the default setting is quarterly bill. 

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.

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.