Medicare premiums are standard monthly fees you pay to maintain your healthcare coverage.
Medicare Part A and Part B premiums are calculated based on your income. These premiums are the same nationwide.
Medicare Advantage (Part C) and Medicare Part D premiums are set by plan providers. Premiums vary by plan.
Medicare premiums change each year. In 2024, the standard Part B premium increased by $9.80 to $174.70 per month.
Are you planning your yearly budget? If you’re a Medicare beneficiary, healthcare costs can vary from month to month depending on the services you access. You’ll need to factor in copays, coinsurance, and your yearly deductible. But there’s one amount you can expect to pay each month — your Medicare premium.
A Medicare premium is a monthly fee you pay for your Medicare plan. Original Medicare Parts A and Part B have federally mandated premiums, while Medicare Advantage (Part C), Medicare Supplement Insurance (Medigap), and Medicare Part D premiums are set by private plan providers.
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Medicare evaluates premiums each year, and announces new Medicare Part A and Part B premiums near the end of the year. Medicare Advantage plans also announce new premiums each year. You’ll have lots of time to think about your current coverage and compare plans. You may decide to stay in the same Medicare plan or switch to a new plan with different premiums.
Medicare premiums vary depending on your Medicare plan and your income. Here’s how much you’ll pay for Medicare premiums in 2024.
Medicare Part A premium
Medicare Part A is part of Original Medicare. It provides inpatient hospital coverage, as well as skilled nursing care. Most Medicare beneficiaries have premium-free Part A. If you or your spouse paid Medicare taxes for 40 quarters, you will not have to pay a Part A premium. In most cases, if you worked for 10 years you’ll qualify for premium-free Part A.
If you don’t qualify for premium-free Part A, monthly premiums for 2024 can range from $278 to $505 depending on how many years you or your spouse paid Medicare taxes.
Here’s how it works:
- If you paid Medicare taxes for fewer than 30 quarters, your Part A premium is $505.
- If you paid Medicare taxes for 30 to 39 quarters, your Part A premium is $278.
- If you paid Medicare taxes for at least 40 quarters, you’ll qualify for premium-free Part A.
Medicare Part B premium
Medicare Part B helps cover medical benefits such as outpatient services and doctor’s visits. The Medicare Part B premium for 2024 starts at $174.70. Most Medicare beneficiaries pay the standard Part B premium. Depending on your income, however, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Your premium could rise to as high as $594.00 per month if you made $750,000 or more.
Medicare Part C premium
Medicare Advantage or Medicare Part C plans offer comprehensive healthcare coverage. These plans include the same coverage as Original Medicare Parts A and B, along with additional benefits such as dental and vision coverage. Each plan provider offering Medicare Advantage plans can set their own costs and premiums — which you may have to pay in addition to your Part A and B premiums. The good news? Many Medicare Advantage plans have much lower premiums than Original Medicare, and some start as low as $0. Some plans will even help pay up to 100% of your Part B premium.
Medicare Part D premium
Medicare Part D provides prescription drug coverage. Just like Medicare Advantage plans, Part D plan providers set their own monthly premiums. The Centers for Medicare and Medicaid Services projected an average Medicare Part D monthly premium of $55.50.
Did the Medicare premiums increase in 2024?
Medicare Part A premiums stayed flat for most people in 2024. Medicare Part A premiums were unchanged from $278 for those who paid Medicare taxes for 30 to 40 quarters. In 2023, the Medicare Part A premium for anyone who paid Medicare taxes for fewer than 30 quarters was $506. In 2024, it decreased to $505.
Medicare Part B premiums increased $9.80 this year, from $164.90 to 174.70.
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Medicare premiums in 2025 are expected to increase from their 2024 rates. Almost every year, Medicare Part A and Part B premiums increase by a small percentage. Medicare Part C premiums may also increase slightly.