Medicare Premiums & Deductibles: What You Need to Know

Understanding Medicare costs is essential to making the best healthcare decisions. Medicare premiums and deductibles vary depending on the type of coverage you have. Let’s break down the key costs you should know about.

Medicare Part A (Hospital Insurance)

• Premium: Most people qualify for premium-free Part A if they or their spouse have worked and paid Medicare taxes for at least 10 years. If not, you may pay up to $505 per month (2024 rate).

• Deductible: The hospital deductible for each benefit period is $1,632 (2024 rate).

• Coinsurance: After 60 days in the hospital, you’ll pay daily coinsurance costs.

  
  

Medicare Part B (Medical Insurance)

• Premium: The standard monthly premium for Part B is $174.70 in 2024, but higher-income earners may pay more.

• Deductible: The annual deductible is $240.

• Coinsurance: After the deductible, you typically pay 20% of the Medicare-approved amount for services.

  
  

Medicare Part C (Medicare Advantage)

• Premium: Varies by plan—some offer $0 premiums, while others may have higher costs.

• Deductibles & Copays: Costs vary based on the plan, provider network, and services included.

  
  

Medicare Part D (Prescription Drug Coverage)

• Premium: Varies by plan and location, with an average premium around $34 per month in 2024.

• Deductible: Some plans have a deductible (up to $545 in 2024) before coverage begins.

• Copays & Coinsurance: Based on drug tiers, generic medications typically cost less.

  
  

How to Save on Medicare Costs

✅ Check for Extra Help: Programs like Medicaid, Medicare Savings Programs, and Extra Help can lower costs.

✅ Compare Plans Annually: Plans change each year—review your coverage during Open Enrollment (Oct 15 - Dec 7).

✅ Use In-Network Providers: Staying within your plan’s network helps lower out-of-pocket costs.

💡 Need help finding the best Medicare plan for your budget? Contact us today for a free consultation! 📞