What Does Medicare Cost?

Premium Part A

Most people don't pay a monthly premium for Part A (sometimes called "premium-free Part A") if they worked 10 years or 40 quarters. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $458 in 2020. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $252 in 2020. If you don't qualify for premium-free Part A, you can buy Part A.

 Part A Hospital And Inpatient Deductible

You pay: 

  • $1,408 deductible for each benefit period

  • Days 1-60: $0 coinsurance for each benefit period

  • Days 61-90: $352 coinsurance per day of each benefit period

  • Days 91 and beyond: $704 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)

  • Beyond lifetime reserve days: all costs

Part B Premium

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Most people pay $144.60 each month (or higher depending on your income). Monthly premiums for Part B come out of your Social Security check. If you are not taking Social Security you will be billed quarterly. In 2020, if you are single and your income is higher than $87,000 and married couples filing jointly who have an income over $174,000 will pay a higher monthly premium. There is a two year lookback period to determine the amount. This is known as IRMAA. Also, if you do not sign up for Medicare Part B when you are suppose to you may incur penalties.

Part B Deductible & Co-Insurance

The Part B deductible in 2020 is $198. If you have Original Medicare, after your deductible is met, you typically pay 20% of the Medicare-approved amount for most medical and doctor services outside of an in-patient hospital stay. (Including most doctor services while you're a hospital inpatient).

Part C Premium-Medicare Advantage Plans

Part C monthly premium varies by plan, most plans do not have a monthly premium. Please see “What are Medicare Advantage Plans” under the Medicare Plans tab above for more information.

Part D Premium

The Part D monthly premium varies by plan and what kind of plan you are on. You could have a stand-alone Prescription Drug Plan with Original Medicare or a Medicare Advantage Plan with the drug plan included. (higher-income consumers may pay more)

Learn more about Medicare costs here.