How much does Medicare cost?
Your annual income determines what you pay for Original Medicare (Parts A and B). Medicare Advantage plans (Part C) and Medicare Part D plans can vary in cost based on the coverage of the plan you select.
Estimating Medicare costs is the first step to making Medicare work within your personal budget. That means knowing the parts of Medicare — what they cover and what you pay.
How much does Medicare Part A and B cost?
Cost of Medicare Part A
If you or your spouse worked and paid Medicare taxes, you will probably receive Medicare Part A premium-free. Otherwise, your Part A premium is determined by your annual income.
There is also a Medicare Part A yearly deductible that applies to your inpatient care. This cost can vary from year to year.
Medicare Part A essentially provides hospitalization coverage, such as hospital stays, hospice care, and even some home health care.
Cost of Medicare Part B
Your Medicare Part B premium is also based on your income. Much like Part A, deductibles change from year to year and can also vary based on your location. The good news is once you meet your deductible, you only pay 20% for most Medicare Part B services during the year.
Medicare Part B provides coverage for outpatient medical care separate from hospitalization. This includes doctor visits, preventive care, X-rays, medical tests and screenings, medical supplies, vaccinations, and other outpatient medical needs.
How much does Medicare Part A and B cost per month?
Visit the Medicare.gov income chart to find out more about your monthly premium.
What do Medicare Advantage plans (Part C) cost?
Your premium, deductible and cost-sharing for Medicare Advantage plans vary based on the plan. You can compare Medicare Advantage plans to help you find the perfect fit for your budget and healthcare needs.
Medicare Advantage plans offer the same coverage as Parts A and B as well as other benefits Original Medicare doesn't cover. You also receive more flexibility when choosing your plan coverage because these Medicare plans come from Medicare-approved private health insurers.
Many Medicare Part C plans include:
- Prescription drug coverage (Medicare Part D)
- Routine dental care including X-rays, exams, and dentures
- Vision care including glasses and contacts
- Hearing care including testing and hearing aids
- Wellness programs and fitness center memberships
What does Medicare Part D cost?
Medicare Part D costs vary by plan. You can sign up for Medicare Part D if you want to add prescription drug coverage to your Original Medicare (Part A and Part B). Original Medicare does not cover prescription medicine, so if you have a health condition that requires regular prescriptions or you just want coverage for occasional medications, it's a good idea to review your costs with Parts A, B, and D combined.
Comparing the costs of Original Medicare to Medicare Advantage
In many cases, it may be cheaper for you to choose an all-in-one Medicare Advantage plan that includes Part A, Part B, and Part D. These plans also include additional benefits not included in Original Medicare like dental, vision, and hearing. Compare Medicare Advantage plans in your area.
What if you cannot afford a Medicare plan?
Do your research and know the costs of Medicare so you can make the smartest choice for your healthcare and your budget.