How Much Does Medicare Cost? What You’ll Pay in 2024 and 2025

Medicare's various costs and deductibles may change each year. The Centers for Medicare & Medicaid Services (CMS) releases the new costs for Medicare Parts A and B and income-related monthly adjustment amounts (IRMAA) every fall for the following year.

Medicare is the federal government health insurance program for people age 65 and older and younger people living with certain illnesses or disabilities. Medicare has four parts — Part A, Part B, Part C and Part D. There’s also Medigap, or Medicare Supplement Insurance, which is an optional add-on to Original Medicare.

Below are Medicare’s premiums and deductibles for 2024 and 2025.

What is the average monthly cost for Medicare in 2024 and 2025?

In general, you’ll pay a monthly premium for each part of Medicare, depending on which parts you’re enrolled in:

How much does Medicare Part A cost?

Medicare Part A covers inpatient care in hospitals and skilled nursing facilities, hospice care and some home health care. Here’s what you’ll pay for Medicare Part A:

• Premium: Free for most^[0]

  Centers for Medicare & Medicaid Services. Costs. Accessed Nov 12, 2024.

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  . (It’s free if you or your spouse worked and paid Medicare taxes for 10 years.)

• Premium if it’s not free: Up to $505 per month ($518 in 2025). 

• Deductible: $1,632 for each benefit period ($1,676 in 2025).

• Coinsurance for inpatient stay: $0 for days 1 to 60 after you pay your deductible, then $408 or more per day after that ($419 in 2025).

• Coinsurance for a skilled nursing facility stay: $0 for days 1 to 20 after you pay your deductible, then $204 or more per day after that ($209.50 in 2025). 

• Maximum out-of-pocket costs: There is no limit unless you have a Medigap policy covering some of your costs. 

Note: If you have a Medigap policy, it may cover many of these costs listed above.

How much does Medicare Part B cost?

Medicare Part B covers medical services, such as your visits to a doctor’s office and preventive care. It also covers durable medical equipment. Here’s what you’ll pay for Medicare Part B:

• Premium: $174.70 per month ($185 in 2025), although you could pay more depending on your income.

• Higher-income beneficiaries: An additional $70 to $419 per month ($74 to $443.90 in 2025) on your premium if your income exceeds certain thresholds. This is the income-related monthly adjustment amount (IRMAA).

• Deductible: $240 ($257 in 2025).

• Coinsurance: Usually 20% of the cost of Medicare-approved services.

• Maximum out-of-pocket costs: No limit unless you have a Medigap policy covering some of your costs.

Note: If you have a Medigap policy, it may cover your coinsurance.

How much does Medicare Part C (Medicare Advantage) cost?

Medicare Advantage is a bundled alternative to Original Medicare that includes the benefits of Part A, Part B and usually Part D. These plans typically include additional benefits, such as some coverage for dental or vision care^[0]

• Average monthly premium: $18.23 ($17 in 2025). (But many plans have a $0 premium.)

• Part B premium: You still must pay this, although some Medicare Advantage plans pay part or all of this for you.

• Deductibles, coinsurance and copays: Costs vary by plan, check the fine print to understand what you’ll pay for medical services.

• Maximum out-of-pocket costs: Plans can set this limit as high as $8,850 ($9,350 in 2025).

How much does Medicare Part D cost?

Medicare Part D is prescription drug coverage, and it’s sold by private health insurance companies, so premiums vary by policy. Here’s what you’ll pay for Medicare Part D:

• Average total monthly premium: $53.95 ($46.50 in 2025).

• Higher-income beneficiaries: You’ll pay an additional $12.90 to $81 per month ($13.70 to $85.80 in 2025) on your premium if your income exceeds certain thresholds. 

• Drug plan price range: $0 to $195.10 per month ($0 to $190.80 in 2025).

• Deductible: Not all plans have one, and it can’t be higher than $545 ($590 in 2025).

• Copays and coinsurance: Check your prescription drugs to see what you’ll pay for them in the plan.

• Maximum out-of-pocket costs: As much as $8,000 in 2024, but this includes the value of some manufacturer discounts on brand name drugs, so actual out-of-pocket spending to reach this would be closer to $3,300, according to health policy nonprofit KFF. (This will be capped at $2,000 in 2025.)

Note: If your Medicare Advantage plan includes Part D benefits, your Part D premium will be included in the plan’s premium.

» MORE: How much does Medicare Part D cost?

How much does Medigap cost?

If you stick with Original Medicare (instead of Medicare Advantage), you have the option of buying additional coverage in the form of a Medigap plan, or Medicare Supplement Insurance. These plans are offered by private insurers and pay many of the costs and deductibles of Part A and Part B, and they may offer some health coverage if you travel internationally. Here’s what you’ll pay for Medigap:

• Premium: Varies by plan and location.

• Best time to buy: During the six-month window that starts the first month you have Medicare Part B (and you’re 65 or older). During this time, Medigap companies must offer you a plan at the same price as everyone else, regardless of your health status^[0]

  Centers for Medicare & Medicaid Services. Get ready to buy: Your Medigap Open Enrollment Period. Accessed Nov 12, 2024.

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  . After that, companies may raise the price or not offer you a plan, depending on your health situation.

Note: You can’t buy Medigap if you have Medicare Advantage.

Although premiums vary, here’s an example of Medigap costs for a 65-year-old nonsmoker in Chicago:

Make sure you compare Medicare Supplement plan types' coverage and costs you purchase.