Generally, you pay a monthly premium for Medicare coverage and part of the costs each time you get a covered service. There’s no yearly limit on what you pay out-of-pocket, unless you have supplemental coverage, like a Medicare Supplement Insurance ( Medigap ) policy, or you join a Medicare Advantage Plan.
What’s a premium, deductible, coinsurance, or copayment?
$0 for most people (because they paid Medicare taxes long enough while working - generally at least 10 years). This is sometimes called “premium-free Part A.” Do I qualify?
If you don’t qualify for a premium-free Part A, you might be able to buy it. In 2024, the premium is either $278 or $505 each month, depending on how long you or your spouse worked and paid Medicare taxes.
$174.70 each month (or higher depending on your income). The amount can change each year. You’ll pay the premium each month, even if you don’t get any Part B-covered services.
Who pays a higher premium because of income?
How do I pay my Part B premiums?
You might pay a penalty if you don’t sign up for Part B when you’re first eligible for Medicare (usually when you turn 65). Check when I should sign up for Part B.
How much is the Part B late enrollment penalty?
Example of the Part B penalty.
Get help with Part A & Part B costs
If you have limited income and resources, you may be able to get help from your state to pay your premiums and other costs, like deductibles, coinsurance, and copays. Learn more about help with costs.
Monthly premiums vary based on which plan you join. The amount can change each year. You may also have to pay an extra amount each month based on your income.
Who pays an extra amount because of income?
You might pay a penalty if you:
How much is the Part D penalty?
Example of the Part D penalty.
Most plans charge a deductible, an amount you pay before the plan starts to pay, for prescriptions you fill. The deductible amount varies based on which plan you join.
Your actual costs vary depending on the medicines you take, if they are on your plan’s list of covered drugs, and which pharmacy you use.
Get help with drug costs
If you have limited income and resources, you may be able to get Extra Help to pay your plan premiums and other drug costs (like deductibles, coinsurance, and copays). If you qualify, you won’t have to pay the Part D late enrollment penalty. Learn more about help with costs.