Medicare Premiums

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’s Part 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.

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 2023 vary depending on your Medicare plan and your income. Here’s how much you’ll pay for Medicare premiums in 2023.

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 2023 can range from $278 to $506 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 $506.
• 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 (2023) starts at $164.90. 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 $560.50 per month.

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 even 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. Medicare Part D monthly premiums typically range from $30 to $100.

Did the Medicare premiums increase in 2023?

Medicare premiums often increase from year to year, however 2023 saw decreases.

Medicare Part A premiums increased in 2023. In 2022, Medicare Part A premiums were $274 for those who paid Medicare taxes for 20 to 30 quarters. This year it increased to $278. In 2022, the Medicare Part A premium for anyone who paid Medicare taxes for fewer than 30 quarters was $499. In 2022, it increased to $506.

Medicare Part B premiums decreased $5.20 this year, from $170.10 to $164.90.

Medicare premiums 2024 are expected to increase from their 2023 rates. Almost every year, Medicare Part A and Part B premiums increase by a small percentage. Medicare Part C premiums may also increase slightly, and Part D premiums may average around $33 per month in 2024.