Medicare Costs

Medicare’s total cost varies for each beneficiary, influenced by several factors. Annually, these costs tend to increase.

Original Medicare Costs in 2024

Medicare beneficiaries are covered for 80% of approved services after meeting their Part A and Part B deductibles. In 2024, the Part A deductible is $1,632, and the Part B deductible is $240. The sections below detail the monthly premiums for each part.

Medicare Part A Costs

Costs for Medicare Part A include the premium, deductible, coinsurance, and copayments.

Part A Premium

Many beneficiaries enjoy premium-free Part A, available to those who have worked and paid Medicare taxes for ten years. Spouses of these individuals may also qualify for premium-free Part A. Those who haven’t met this requirement could face up to $505 monthly for Part A, or $278 if they’ve paid Medicare taxes for at least 30 quarters.

Part A Deductible

The current deductible for Medicare Part A is $1,632, applied differently from typical annual deductibles. It resets at the beginning of each benefit period, defined as starting with hospital admission and ending after 60 days out of the hospital.

Part A Copayments

Copayments apply after 60 days in a hospital or 20 days in a skilled nursing facility within a benefit period. Costs increase with the length of the stay, and after 100 days, Part A benefits are exhausted, leading to full out-of-pocket payment.

Medicare Part B Costs

Medicare Part B involves premiums, deductibles, coinsurance, and copayments.

Part B Premium

The standard premium for Part B is $174.70. High-income beneficiaries pay an additional income-related monthly adjustment amount (IRMAA), based on tax returns from two years prior. Typically, this premium is deducted from Social Security checks.

Part B Deductible

The Part B deductible is $240. Programs like Extra Help can assist with deductibles and coinsurance costs for eligible individuals. Preventive care is exempt from the deductible.

Medicare Income Adjustments

Beneficiaries with higher incomes may face increased Part B premiums. Appeals can be made to reduce these premiums to the standard amount in certain circumstances.

Part C Costs

Costs for Medicare Part C (Medicare Advantage) vary, including monthly premiums, deductibles, coinsurance, and copayments.

Part C Premium

Several Part C plans offer low or no premiums, but high out-of-pocket expenses may arise for extensive medical treatment.

Part C Deductible

These vary across plans, with some having no deductible for medical services but a deductible for prescription drugs. Out-of-network services may not count towards the deductible.

Medicare Part D Costs

Part D, managed by private insurers, doesn’t have a standard premium.

Part D Premium

Premiums increase for high-income earners. Delaying Part D enrollment without credible prescription coverage leads to a penalty, calculated based on the national base beneficiary premium and the duration without coverage.

Part D Deductible

The maximum deductible is $545, varying across medications. After meeting the deductible, members pay a copay or coinsurance based on the drug’s tier.

Common Medicare Cost Questions

Will Medicare deduct from my Social Security check?

Your Part B premium can be deducted from Social Security benefits, or you can pay Medicare separately. You can opt to have other Medicare parts deducted as well.

What are average Medicare Costs for a 65-Year-Old?

A 65-year-old with premium-free Part A and the standard Part B premium will pay $174.70 for Original Medicare. This excludes Medicare Advantage, Medigap, or Part D plans. Under-65s eligible for Medicare due to disability pay the same for Original Medicare.

Get More Info About Medicare Costs in 2024

Medicare costs change annually, so it’s crucial for beneficiaries to stay informed. Annual reviews of coverage can ensure you’re getting the best value. Our licensed agents are here to help review and optimize your plans.

Get Our Help Today!

At Stroman Insurance Advisors, we provide personalized, unbiased health insurance and Medicare guidance.

Schedule an Appointment