How much you spend on Medicare can depend on your income and the parts of Medicare that you enroll in. Medicare costs tend to change slightly each year.
Medicare costs include monthly premiums, annual or benefit period deductibles, and coinsurance for medical services you receive.
Your costs may vary slightly depending on the specific parts of Medicare you enroll in and whether you participate in Part C (Medicare Advantage plan).
You may also have to pay excess charges if you receive care from a facility that does not accept Medicare or charges more than the amount Medicare covers for specific services.
Keep reading to learn the 2024 costs of Medicare and ways you may be able to lower them.
Medicare Part A (hospital insurance) covers healthcare costs like:
- inpatient hospital stays
- skilled nursing facility stays
- home healthcare and hospice
Medicare Part A costs in 2024 include:
| Part A costs | 2024 rates |
|---|---|
| deductible per benefit period | $1,632 |
| hospital coinsurance days 1 to 60 | $0 |
| hospital coinsurance days 61 to 90 | $408 |
| hospital coinsurance day 91+ | $816 |
| skilled nursing facility coinsurance days 1 to 20 | $0 |
| skilled nursing facility coinsurance days 21 to 100 | $204 |
| skilled nursing facility coinsurance day 101+ | you pay all costs |
Medicare Part B (medical insurance) covers outpatient medical care, including doctor and specialist appointments and durable medical equipment.
Medicare Part B costs in 2024 include:
| Part B costs | 2024 rates |
|---|---|
| standard monthly premium | $174.70 |
| annual deductible | $240 |
| coinsurance | 20% of Medicare-approved amount |
If you receive a service from a healthcare facility that does not “accept assignment,” or the Medicare-approved amount for that service, you may be responsible for these excess charges in addition to your coinsurance cost. Excess charges typically amount to 15% beyond what Medicare pays. This amount does not count toward your deductible.
Medicare Advantage (Part C) plans provide coverage through a private health insurance provider. This coverage must cover at least as much as Original Medicare (parts A and B) cover. Some plans may also cover additional services that Original Medicare does not cover.
The cost of Part C plans varies by provider, plan, and how much coverage you have. You have to check with your Part C provider for the 2024 premium rates and out-of-pocket maximum.
Once you reach your out-of-pocket maximum with a Medicare Part C plan, the insurer pays 100% of your costs for the rest of the year.
Like Part D, Medicare Part D (prescription drug coverage) plans provide coverage through a private health insurance provider.
The cost of Part D plans varies by provider, plan, and pharmacy. You have to check with your Part D provider for the 2024 premium and coinsurance costs.
Medigap (Medicare supplement insurance) is a set of plans purchased through private providers to cover costs associated with Medicare coverage. The cost of Medigap plans varies according to the insurance provider and your state.
These plans can help you save costs by covering coinsurance costs and other fees. Medigap coverage varies by plan.
Since the coverage is specific to your age, needs, location, and insurance provider, the price of Medigap plans also varies greatly. Each company determines individual premiums based on these factors. This is why comparing plans and prices is important when choosing your Medigap provider.
Note that Medigap plans C and F are not available for purchase by those who became eligible for Medicare on or after January 1, 2020.
The Centers for Medicare & Medicaid Services (CMS) typically announces changes to Medicare monthly premiums before the end of the year. Costs that usually increase each year include:
- Part B monthly premiums
- Part B annual deductibles
- Part D average monthly basic premiums
In addition to adjusting Medicare premiums and deductibles, the Social Security Administration increases benefits with the cost-of-living adjustment (COLA). The 2024 COLA is 3.2%.
CMS has announced the following changes to Part D coverage:
- $2,000 out-of-pocket maximum per year for medications with Part D plans
- elimination of the “donut hole” coverage gap for prescription medications to include three phases: a deductible phase, an initial coverage phase, and a catastrophic phase
- $36.78 base beneficiary premium
Use this simple Medicare tool to compare Medicare plans in your area.
Enrolling in Medicare during your initial enrollment period can help you avoid late enrollment penalties, which may raise your monthly costs.
You may be able to lower your Medicare costs, when possible, with one of the following programs:
- Manage your prescription drug costs by switching to a generic drug when possible.
- Apply for Extra Help, an assistance program for prescription drug coverage.
- Apply for copay relief or financial aid help from the Patient Advocate Foundation.
- Find out if you qualify for Medicaid, a joint federal and state program that helps pay for medical costs.
- Apply for Medicare Savings Programs like the Qualified Medicare Beneficiary (QMB) Program or the Specified Low-Income Medicare Beneficiary (SLMB) Program. These are state-level discount programs for people with Medicare who meet a certain income limit.
Medicare costs are changing in 2024. What you pay will depend on which Medicare plans you choose.
Medicare has several discount and assistance programs available to help reduce Medicare costs.
Qualifying for these programs is based on several factors, including where you live, your income, if you have a disability, and the insurance provider you choose.