National Average Premiums for Medicare

At age 65, you will have the option of enrolling in Medicare. While some parts of Medicare are free, you will pay a premium for Part B and D. Following is an overview of what Medicare may cost you. Note these are the national average premiums for Medicare, as rates do vary per state and carrier, and depending the type of Medicare coverage you have. We encourage you to call our office for a more accurate picture of your total costs and to help you pick the right Medicare option for your unique healthcare needs.

2024 Medicare Costs Part A

Part A Monthly Premium

Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.

  • $505/month for those with fewer than 30 quarters of Medicare-covered employment
  • $278/month for those with 30-39 quarters of Medicare-covered employment

Beneficiary Pays for Skilled Nursing Facility Stay

  • $0 for the first 20 days of each benefit period
  • $204.00 per day for days 21–100 of each benefit period
  • All costs for each day after day 100 of the benefit period
Beneficiary Pays for Hospital Stay
  • $1,632 deductible per benefit period
  • $0 for the first 60 days of each benefit period
  • $408 per day for days 61–90 of each benefit period
  • $816 per “lifetime reserve day” after day 90 of each benefit period (up to a maximum of 60 days over your lifetime)

2024 Medicare Costs Part B

Part B Monthly Premium

Most people pay the standard Part B premium amount which is $174.70 in 2024

  • If your income was more than $91,000 ($182,000 filing joint) you’ll pay $244.60
  • If your income was more than $114,000 ($228,000 filing joint) you’ll pay $349.40
  • If your income was more than $142,000 ($284,000 filing joint) you’ll pay $454.20
  • If your income was more than $170,000 ($340,000 filing joint) you’ll pay $559
  • If your income was more than $500,000 ($750,000 filing joint) you’ll pay $594
Beneficiary Pays for Part B Services
  • $240.00 deductible per benefit period
  • After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, outpatient mental health services, certain home health services, and durable medical equipment

2024 Medicare Advantage Plans

Medicare Advantage plans combine Part A and B into one plan and are offered by Medicare-approved health insurance companies as an alternative option to your Original Medicare coverage. Premiums and out-of-pocket costs may vary depending on your plan, however some premiums can be as low as $0, in addition to your monthly Medicare Part B premium (see above). To ensure you find a plan that fits your specific healthcare needs and budget, please contact our licensed Medicare agent for professional assistance.

2024 Medicare Part D Plans (Prescriptions)

Monthly Premiums

Most drug plans charge a monthly fee that varies by plan. You pay this in addition to the Part B premium. If you’re in a Medicare Advantage Plan (Part C) or Medicare Cost Plan with drug coverage, the monthly premium may include an amount for drug coverage.

  • If your income was more than $91,000 ($182,000 filing joint) you’ll pay $12.90 + your plan premium
  • If your income was more than $114,000 ($228,000 filing joint) you’ll pay $33.30 + your plan premium
  • If your income was more than $142,000 ($284,000 filing joint) you’ll pay $53.80 + your plan premium
  • If your income was more than $170,000 ($340,000 filing joint) you’ll pay $74.200 + your plan premium
  • If your income was more than $500,000 ($750,000 filing joint) you’ll pay $81.00 + your plan premium

Deductibles vary between Medicare drug plans. Some Medicare drug plans don’t have a deductible.

  • No Medicare drug plan may have a deductible more than $545 in 2024.
  • Once your deductible is met, you’ll pay a coinsurance (copay) for prescription drugs. Note that the amount of your copay may change during the benefit period, if the drug price fluctuates.
    • Initial coverage limit is $5,030 (plan pays 75% – you pay 25%)
    • Once you and your plan pay this amount, you’ll continue to pay 25% of the cost of your prescriptions drugs until you reach your threshold
    • Annual out-of-pocked threshold is $8,000

Coverage Gap – Donut Hole

Once you and your plan have spent $5,030 covered drugs in 2023, you’re in the coverage gap (a temporary limit on what the plan covers). Even though you’ll only pay 25% for both brand name and generic drugs at this point, almost the full price of the drug (except for what the plan pays) will count as out-of-pocket costs to help you get out of the coverage gap.

  • The manufacturer pays 70% of drug costs
  • The plan pays 5% of drug costs
  • You pay 25% of drug costs
  • The plan also pays 75% of a dispensing fee, you pay 25% of the dispensing fee

Catastrophic Coverage

Once you reach your threshold ($8,000), you are out of the coverage gap (donut hole) and you’ll automatically get catastrophic coverage. This assures you only pay a small coinsurance amount or copayment for covered drugs for the rest of the year.

  • You’ll pay 5% or a small copay (whichever is greater) of the cost of your medications for the rest of the year.
  • Your plan pays the rest

Insulin Costs

Beginning Jan. 1, 2023 and beyond, all Medicare Part D and Medicare Advantage plans with prescription coverage will cap the cost of select insulin products at $35.

With this change, you’ll pay no more than $35 for a month’s supply of insulin.

Starting on July 1, people on Original Medicare who use an insulin pump will also pay no more than $35 for a month’s supply of insulin.

Vaccine Costs

Starting in 2023 and beyond, vaccines covered under Medicare Part D will be free.

This means you pay no deductible, coinsurance or copay for vaccines — even the shingles vaccine — covered by Medicare Part D.

MEDICARE DISCLAIMERS: We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.

The above premiums represent national averages. Plan premiums can and do vary by state and by carrier.

The above information on Medicare costs was retrieved from Medicare.gov.

Pathway Health Insurance Experts, nor it’s agents, are not part of the Federal Government Medicare System. The content in on this page has not been reviewed or approved by Medicare.