The cost of Medicare in the 2024 enrollment year depends on whether a person paid taxes throughout their employment. Costs can include premiums, deductibles, copayments, and coinsurance.
Most people do not pay a monthly premium for Medicare Part A (hospital insurance). However, deductibles will apply for hospital stays.
Medicare Part B (medical insurance) will have a monthly premium and deductibles. Medicare Part D (prescription drugs) and Medicare Advantage (Part C) also have various costs.
As costs will depend on an individual’s circumstances, they can contact Medicare directly for specific costs for their Medicare plan.
This article looks at what to expect from Medicare premiums and out-of-pocket costs in 2024.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Medicare Part A costs include premiums, deductibles, and copayments.
Monthly premium
Most people do not pay a monthly premium for Medicare Part A. Medicare collects taxes from a person’s pay throughout their working life.
The eventual fee a person will pay for Part A depends on how many quarters they worked.
Those who worked at least 40 quarters in their lifetime while paying Medicare taxes receive a $0 premium. The premium is the amount a person pays for Medicare each month. Medicare Advantage plans and Medigap policies also charge a premium.
Most people qualify for premium-free Medicare Part A. The table below explains Part A premiums in more detail.
| Quarters of coverage | Monthly premium |
|---|---|
| At least 40 quarters | $0 |
| At least 30 quarters or married to somebody with at least 30 quarters | $278 |
| Fewer than 30 quarters | $505 |
Other costs
Other costs for Part A in 2024 include:
- a $1,632 deductible per benefit period
- $0 copayment for the first 60 days of a hospital stay during each benefit period
- $408 for hospital stay days 61 to 90
- $816 per lifetime reserve day for hospital stay day 91 onward, up to a maximum of 60 lifetime reserve days
If a person stays in a skilled nursing facility, they will need to pay:
- $0 for the first 20 days per benefit period
- $204 for days 21 to 100
- the full cost for day 100 onward
Learn more about how much Medicare pays for hospital stays.
Medicare Part B costs can include a monthly premium, deductibles, and coinsurance.
Monthly premium
Part B requires a monthly premium, based on the individual’s yearly income. Therefore, people from different income brackets pay varying premiums.
In most cases, the monthly premium in 2024 is $174.70. View the table below for a full overview of Plan B premiums based on individual yearly income and the joint income for a couple based on 2022 earnings.
| Individual yearly income | Joint yearly income | Monthly premium |
|---|---|---|
| Up to $103,000 | Up to $206,000 | $174.70 |
| $103,001 to $129,000 | $206,001 to $258,000 | $244.60 |
| $129,001 to $161,000 | $258,001 to $322,000 | $349.40 |
| $161,001 to $193,000 | $322,001 to $386,000 | $454.20 |
| $193,001 to $499,999 | $386,001 to $749,999 | $559.00 |
| $500,000 or above | $750,000 or above | $594.00 |
Other costs
The Medicare Part B deductible for 2024 is $240.
The coinsurance is the amount a person will pay for the service after they have paid the deductible. Medicare Part B pays 80% of the cost of the service, while the individual pays the remaining 20%.
Learn about eligibility for Medicare Part B.
Medicare Part D covers prescription drugs. Private companies administer Part D plans, so the costs vary depending on the plan a person chooses.
Monthly premiums also vary based on income. People with higher incomes pay more for Part D premiums. In 2024, the premiums will be based on income from 2022.
The table below explains the income-based premiums for individuals and couples that a person will pay in addition to the premium specific to their plan.
| Individual yearly income | Joint yearly income | Monthly premium |
|---|---|---|
| Up to $103,000 | Up to $206,000 | The plan premium only |
| $103,001 to $129,000 | $206,001 to $258,000 | The plan premium plus $12.90 |
| $129,001 to $161,000 | $258,001 to $322,000 | The plan premium plus $33.30 |
| $161,001 to $193,000 | $322,001 to $386,000 | The plan premium plus $53.80 |
| $193,001 to $499,999 | $386,001 to $749,999 | The plan premium plus $74.20 |
| $500,000 or above | $750,000 or above | The plan premium plus $81.00 |
The cost of drugs with Part D will also depend on the specific drug and tier. Each Part D plan has a formulary, which is a list of drugs that the plan covers. Drugs in the lower tiers generally cost less, while drugs in Tier 3 or the Specialty Tier usually have a higher copayment.
Phases of coverage
In 2024, Part D includes four phases of coverage. Costs can depend on which coverage phase a person is in.
| Coverage phase | Individual responsibility | Additional details |
| Deductible | 100% | The deductible cannot exceed $545 in 2024. Depending on the plan, there may not be a deductible. |
| Initial coverage | 25% | This phase lasts until the plan has paid $5,030 in drug coverage. |
| Coverage gap | 25% | This phase lasts until an individual pays $8,000 in out-of-pocket costs. It covers 75% of generic drug costs. It covers 5% for brand-name drugs, with a 70% discount from the drug manufacturer. |
| Catastrophic coverage | 0% | Catastrophic coverage lasts until December 31. The plan returns to the deductible phase on January 1 the following year. |
Learn more about Medicare Part D costs.
The cost of Medicare Advantage (Part C) plans will depend on the individual plan.
Costs can include:
- premiums
- deductibles
- copayments
- coinsurance
A person must also pay the Part B premium. Medicare Advantage includes Original Medicare parts A and B. It often also includes Part D.
Learn more about how much Medicare Advantage costs.
- the insurance provider
- the specific plan
- where the individual lives
Private insurance companies sell Medigap plans in agreement with Medicare. The plans provide supplemental coverage to help cover some of the costs that Original Medicare does not cover.
A person can contact Medigap to find out about the costs of their specific plan.
Late enrollment to a Medicare plan may include penalties. These are added to the cost of the monthly premium.
If a person enrolls late in Part A, their monthly premium may increase by up to 10%.
If a person enrolls late in Part B but they qualify for the Special Enrollment Period, they will not usually receive a penalty. However, they may have to pay an extra 10% for each year during which they could have enrolled.
If a person enrolls late in Part D, they may have to pay an extra 1% for each month that they could have enrolled. This may apply if they do not join Medicare Plan D when they first get Medicare or if they go at least 63 days without creditable drug coverage.
However, a person will usually not need to pay a Part D penalty if they have existing creditable drug coverage or if they qualify for Medicare Extra Help.
Learn more about Medicare late enrollment penalties.
The premiums and out-of-pocket expenses for Medicare parts A and Part B increased from 2023 to 2024. The table below outlines the changes.
| Service | 2023 cost | 2024 cost | Increase |
|---|---|---|---|
| Part A deductible | $1,600 | $1,632 | $32 |
| Hospital coinsurance costs for days 61 to 90 | $400 per day | $408 per day | $8 |
| Hospital coinsurance costs for day 91 onward | $800 per day | $816 per day | $16 |
| Medicare Part B standard monthly premium | $148.50 | $144.60 | $3.90 |
| Skilled nursing facility for days 21 to 100 | $200 | $204 | $4 |
| Part B deductible | From $164.90 | From $174.70 | $9.80 |
The reason Medicare costs increase each year is unclear.
However, the Railroad Retirement Board suggests that it might be due to projected increases in healthcare spending.
The CMS also suggests that Medicare adjusts rates for copayments, deductibles, and premiums according to the Social Security Act.
The costs of prescription drugs also increase regularly. This is another possible contributing factor for increasing Medicare Part D costs.
At the time of writing, Medicare has not yet released parts A and B costs for 2025.
The CM) has released the 2025 costs for Plan D. Changes include:
- changing from four phases of coverage to three phases, namely:
- annual deductible
- initial coverage
- catastrophic coverage
- issuing an annual deductible of $590, increased from $545 in 2024
- requiring a lower out-of-pocket maximum of $2,000, a decrease from $8,000 in 2024
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.
Medicare Part A costs in 2024 include a monthly premium of either $0, $278, or $505. Most people do not have a monthly premium, which is the rate for people who have worked at least 40 quarters in their lifetime.
Other Part A costs include deductibles and copayments.
Medicare Part B costs include a monthly premium, which for most people is $174.70. The deductible is $240, and a person will usually pay 20% of the costs of the services they receive.
Costs for Medicare Part D and Medicare Advantage can depend on the specific plan. The costs of drugs can also vary greatly.
Medigap costs will depend on factors such as the specific insurance provider, where a person lives, and the specific plan.
Several factors play a role in increased costs, including rising prescription drug prices. Income also affects the cost of Medicare Part B premiums. Premiums increase for people who earn higher wages.
A person can contact Medicare or their insurance provider to find out more about the costs of their plan in 2024.