What Should I Expect To Pay for Medicare in 2024?

Most Medicare beneficiaries will have a monthly premium of at least $174.70 but it can be higher depending on your income, whether you buy additional coverage, if you opt for a Medicare Advantage plan and if you do not qualify for premium-free Part A coverage.

Read on to learn more about how much different parts of Medicare cost and how the various Medicare options can affect your premiums and other fees.

On This Page

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  How Much Does Medicare Cost?

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  Does Medicare Cost More Than Standard Health Coverage?

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  How Much Does It Cost if I Enroll in Medicare Late?

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  FAQs

How Much Does Medicare Cost?

If you enroll in Original Medicare (includes Part A and Part B), then you will pay at least $174.70 per month — more depending on your income, how long you’ve been paying for Medicare taxes, if you add prescription drug coverage and if you buy Medigap.^[1] If you opt instead for a Medicare Advantage plan, the monthly rate is not standardized and pricing can vary based on your carrier and plan.

Below is a quick breakdown of the premium, out-of-pocket costs and coverages for each part of Medicare.^[1][2][3][4]

Keep in mind that delaying enrolling in Medicare can trigger a penalty that will increase your premium — permanently for some parts (more on this in a later section).

Medicare Part A (Hospital Services)

Most Medicare beneficiaries qualify for premium-free coverage after paying Medicare taxes for at least 10 years. If you paid Medicare taxes for at least 7.5 years but fewer than 10 years, your Part A premium would be $278 per month but for any length less than that, you’ll pay a monthly premium of $505.^[1][4]

Part A coverage also carries a $1,632 deductible — the out-of-pocket expense you pay per benefit period whenever you are admitted to the hospital. In addition, inpatient hospital and skilled nursing facility care will be fully covered for only a certain timespan:^[1]

• Inpatient hospital care: $0 for the first 60 days, $408 to $816 each day for days 61 to 150 and then the entire cost for all days after
• Skilled nursing facility care: $0 for the first 20 days, $204 each day for days 21 to 100 and then the entire cost for all days after

Part A typically fully covers home health care and hospice care services alongside hospital insurance, but up to 20% of the Medicare-approved amount may be charged for durable medical equipment, like wheelchairs and walkers. A $5 copay can also apply for pain relief and system management while at home under hospice care.^[1]

Medicare Part B (Medical Services)

You must have enrolled in Medicare Part A in order to buy Part B, which can cost $174.70 to $594 per month. You pay a higher premium depending on your modified adjusted gross income in 2022:^[5]

Alongside having a $240 deductible, you are also responsible for the 20% coinsurance costs for the Medicare-approved amount for covered services, with Medicare covering the remaining 80%.^[1]

Medicare Part C (Medicare Advantage)

The average projected premium for a Medicare Advantage plan (MA plan) is $18.50 per month in 2024.^[2] Unlike Original Medicare’s standardized pricing, MA plans can vary in cost depending on which private carrier you buy from and the details of your policy. You are also responsible for continuing to pay your Medicare Part A and B premium — if you have a Medicare Advantage premium of $20, at a minimum, you will still need to pay your total Part B premium starting at $174.70, giving you a potential total of $194.70.^[6]

In addition to covering benefits under Medicare Part A and B, many MA plans bundle Part D prescription drug coverage as well as benefits excluded by Original Medicare, such as vision, hearing, and dental. However, your coverage is restricted only to providers within the plan’s network. In addition, some MA plans would restrict you from enrolling in Part D so be sure you’re satisfied with the plan’s drug coverage before buying it.^[6]

Medicare Part D (Prescription Drug Coverage)

Part D, or Medicare prescription drug coverage, is an optional addition to Original Medicare with its own premium. The average estimated monthly premium for Part D is projected at $55.50 in 2024, with costs varying by state and provider.^[3] Similar to Part B, your Part D premium in 2024 is based on your yearly income in 2022:^[5]

Keep in mind that you will need to be enrolled in Medicare Part A and B and pay for those premiums in addition to your part D premium. Copays and coinsurance can apply and the deductibles will vary based on your plan and the drug tier, ranging in cost from zero to $545 per benefit period.^[7] Prescription drug coverage is usually bundled into an MA plan (but not always) and will be factored into the monthly premium, not as a separate cost.

Medicare Supplements (Medigap)

Medigap is sold by private insurance companies and its costs can vary from one insurance company to another, but the coverage and benefits of each plan letter are the same regardless of the insurer.^[8] Companies can consider factors like inflation, where you live and whether you smoke into their pricing methods. When it comes to using age as a rating factor, companies can use the following three underwriting methods:^[9]

• Community-rated: The monthly premium is the same for all enrollees, regardless of age.
• Issue-age-rated: The monthly premium is based on your age when you purchase the Medigap policy and cannot later increase due to your older age (but can increase due to inflation and other factors).
• Attained-age-rated: The monthly premium is based on your current age and can increase over time as you age.

You must enroll in Medicare Part A and B to purchase a Medigap plan and it is only purchasable if you have Original Medicare — you cannot buy Medigap if you have a Medicare Advantage plan.^[10] You will still be responsible for paying your Part A and B premiums.

Does Medicare Cost More Than Standard Health Coverage?

In general, Medicare coverage is less expensive than a medical insurance plan purchased either through the marketplace or your employer, especially if you qualify for premium-free Part A. In 2023, employer-sponsored individual coverage cost about $703 per month on average and in 2024, it costs $477 per month on average to buy the second-cheapest silver plan from the health insurance marketplace.^[11][12] Meanwhile, it can cost as low as $174.70 per month if you only have to pay for Medicare Part B coverage.^[1]

Of course, your actual Medicare cost can vary based on your income, if you buy prescription drug coverage and Medigap or if you buy a Medicare Advantage plan.

How Much Does It Cost if I Enroll in Medicare Late?

You can incur a late enrollment penalty for each part of Medicare if you do not sign up when you are first eligible and those penalties can stack the longer you delay enrolling. Below is a breakdown of these penalties for each part and how much and for how long they will affect your Medicare premiums.^[13][14]

In order to be exempt from the above penalties, you will usually need to have existing qualifying coverage such as insurance from your employer.^[13] Avoiding the Part B penalty is possible if you trigger a special enrollment period for specific circumstances like you recently lost Medicaid coverage, you were affected by a natural disaster or you were recently released from incarceration.^[15]