Medicare Costs at a Glance: Premiums, Deductibles, and Copays by Part

Why Medicare Costs Are More Complicated Than One Number

When people ask "How much does Medicare cost?" they're usually expecting a single figure. The reality is that Medicare is split into four distinct parts — A, B, C, and D — and each part carries its own premium structure, deductible, and cost-sharing rules. What you ultimately pay depends on which parts you enroll in, how often you use healthcare, and whether you qualify for any premium-free benefits.

This guide is designed as a quick-reference resource. Whether you're approaching age 65 or helping a family member sort through options, you'll find the 2024 standard cost figures for every part laid out plainly — with enough context to actually understand what each number means. If you need a broader orientation first, start with our first-year Medicare guide before returning here.

Part A: Hospital Insurance Costs

Part A covers inpatient hospital stays, skilled nursing facility (SNF) care, hospice, and some home health services. Most people don't pay a monthly premium for Part A — but that only applies if you or your spouse worked and paid Medicare taxes for at least 10 years (40 quarters).

Part A Premium

• $0/month — if you have 40+ qualifying work quarters (most beneficiaries)
• $278/month — if you have 30–39 qualifying quarters
• $505/month — if you have fewer than 30 qualifying quarters

Part A isn't truly free for everyone — the premium waiver is earned through years of payroll taxes, and those who don't qualify pay a significant monthly amount.

Part A Deductible

Unlike most insurance, Part A uses a benefit period system rather than a calendar-year deductible. In 2024, the deductible is $1,632 per benefit period. A benefit period begins the day you're admitted to a hospital or SNF and ends when you haven't received inpatient care for 60 consecutive days. Importantly, there's no annual cap on how many benefit periods you can have — meaning you could theoretically owe the $1,632 deductible more than once in a year.

Part A Coinsurance (Hospital)

Part A Coinsurance (Skilled Nursing Facility)

The SNF coinsurance is one of the costs that catches beneficiaries off guard. See our full breakdown of Part A costs that surprise people most, especially around extended stays and benefit period resets.

Part B: Medical Insurance Costs

Part B covers outpatient care — doctor visits, lab work, diagnostic imaging, preventive services, durable medical equipment, and most non-hospital treatments. Unlike Part A, virtually everyone pays a Part B premium, and that premium is income-adjusted.

Standard Part B Premium

The standard monthly premium for Part B in 2024 is $174.70/month. However, if your income exceeds certain thresholds, you'll pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of this. Higher earners can pay up to $594.00/month.

Part B IRMAA Surcharges (2024)

Part B Deductible

The annual Part B deductible in 2024 is $240. This resets every calendar year. After you meet this deductible, Medicare generally pays 80% of approved costs, and you're responsible for the remaining 20% coinsurance — with no out-of-pocket maximum in Original Medicare.

That 20% with no cap is why many people add a Medigap (Medicare Supplement) policy. Get the full picture of what Part B actually pays for, including which services are covered at 100% with no cost-sharing.

One important exception: many preventive services — including the annual wellness visit, most cancer screenings, and certain vaccines — are covered at $0 cost-sharing when provided by a Medicare-accepting provider. See the full list of zero-cost preventive services under Part B.

Part C: Medicare Advantage Costs

Medicare Advantage (Part C) is an alternative way to receive your Medicare benefits through a private insurer. These plans must cover everything Original Medicare (Parts A and B) covers, and most also include Part D drug coverage and extras like vision, dental, or hearing.

Because Part C plans vary widely by insurer and geography, there is no single standard cost structure — but here's what you'll typically encounter:

Part C Premium

• $0/month — Many plans advertise $0 premiums, though you still pay your Part B premium separately.
• Average: ~$18/month — The weighted average premium across all Medicare Advantage plans in 2024, per CMS data.

Part C Deductibles, Copays, and Coinsurance

These vary by plan. Unlike Original Medicare's open 20% coinsurance, most Advantage plans use fixed copays — for example, $10 for a primary care visit or $50 for a specialist. Some plans have $0 deductibles; others have deductibles up to the Medicare maximum of $240 for Part B services.

Out-of-Pocket Maximum

This is a critical difference from Original Medicare: all Medicare Advantage plans are required by law to cap your annual out-of-pocket costs. In 2024, the maximum allowed is $8,850 for in-network services and $13,300 for combined in- and out-of-network. Many plans set their caps lower.

Compare Original Medicare and Medicare Advantage side by side to understand the full trade-offs — including network restrictions that come with most Advantage plans.

Part D: Prescription Drug Coverage Costs

Part D covers prescription drugs and is available either as a standalone Prescription Drug Plan (PDP) added to Original Medicare, or bundled into a Medicare Advantage plan (MAPD). Like Part C, Part D plans are offered by private insurers and vary by plan.

Part D Premium

There is no standard Part D premium — it varies by plan. In 2024, the average basic premium is approximately $55.50/month, though plans range from under $10 to over $100 depending on the formulary and your location.

High earners also pay an IRMAA surcharge on Part D, ranging from an additional $12.90/month to $81.00/month depending on income bracket.

Part D Deductible

Plans may charge a deductible before coverage kicks in. The maximum allowed Part D deductible in 2024 is $545. Some plans waive the deductible entirely, while others charge the full amount only for certain drug tiers.

Part D Cost-Sharing Phases (2024)

Starting in 2024, the catastrophic phase now means $0 cost-sharing once your out-of-pocket drug costs reach $8,000 — a significant change under the Inflation Reduction Act that eliminates what was previously called the "donut hole" coverage gap for most beneficiaries.

If you don't enroll in Part D when first eligible and don't have other creditable drug coverage, you'll face a late enrollment penalty of 1% of the national base premium per month you went without coverage — and that penalty is permanent. Understand enrollment windows and late penalties for all four parts before assuming you can wait.

How to Use These Numbers When Building Your Medicare Budget

Looking at costs part by part is useful, but your real budget depends on how the parts combine. Here's a simple framework for thinking through your total exposure:

1. Start with your Part B premium — everyone owes this. At standard income, that's $174.70/month, or $2,096.40/year before you use a single service.
2. Add your Part A costs — most people pay $0 in premium, but if you're hospitalized, the per-benefit-period deductible and daily coinsurance can add up fast.
3. Decide between Original Medicare + Medigap + Part D, or Medicare Advantage — this choice reshapes your cost exposure dramatically. Compare both paths in detail here.
4. Compare Part D plans using Medicare's Plan Finder tool — your specific drugs matter more than the average premium.
5. Check IRMAA thresholds — if your income is near a bracket boundary, a Medicare IRMAA appeal or income planning strategy may lower your costs.

Work through our pre-enrollment checklist to make sure you're not overlooking any cost decision before you lock in your coverage. And for a refresher on how cost-sharing fundamentals like deductibles and out-of-pocket maximums work across any insurance plan, our premium and deductible explainer is a solid starting point.