Medicare Part A and B Cost Basics
Key Takeaways
- Medicare Part A and Part B, also called Original Medicare, cover most of your healthcareHealthcare is the industry dedicated to maintaining or improving health and well-being. services (hospital and medical), but enrollees are responsible for certain costs.
- Original Medicare costs include premiums, deductibles, and coinsurance.
- Medicare Part AMedicare Part A is hospital insurance, which covers the care you receive while admitted to a hospital, skilled nursing facility, or other inpatient facility. Medicare Part A is part of Original Medicare. does not have a premiumA premium is a fee you pay to your insurance company for health plan coverage. This is usually a monthly cost. if you or your spouse have worked for at least 10 years.
- Medicare Part BMedicare Part B is medical insurance that covers Medicare-approved services — such as medically necessary treatment and preventive services — and certain other costs, like durable medical equipment. Medicare Part B is part of Original Medicare. premiums for 2025 start at $185 and increase depending on your income. Not enrolling on time can increase your premium amount.
- You can add a Medicare Part D prescription drug plan and a Medicare Supplement (Medigap) plan to help with the costs not covered by Original MedicareOriginal Medicare is a fee-for-service health insurance program available to Americans aged 65 and older and some individuals with disabilities. Original Medicare is provided by the federal government and is made up of two parts: Part A (hospital insurance) and Part B (medical insurance). .
Medicare Part A and Part B Coverage
Medicare Parts A and B, also known as Original Medicare, are available to U.S. adults who are 65 years of age and older or who have certain disabilitiesA disability is a restriction or lack of ability (resulting from an impairment) to perform an activity in the manner or within the range considered normal for a human being. The Social Security Administration judges disability — and whether you qualify for financial assistance — based on whether you can work. .
Part A is hospital insurance, and Part B is medical insurance.
Part A
Medicare Part A covers:
- Hospital stays
- Skilled nursing facility stays
- Some home health
- And more
Part B
Medicare Part B covers:
- Doctor’s office visits
- Outpatient therapies
- Durable medical equipment
- And more
Parts A and B are also different in cost. Understanding the Original Medicare costs that you’re responsible for will help you make the right choices for your health and budget.
Find the Medicare Advantage plan that meets your needs.
How Much Does Medicare Part A Cost?
The cost of Medicare Part A premiums depends on whether you or your spouse paid income taxes, and for how long. Most individuals won’t pay a Part A premium.
Medicare Part A Premiums
Medicare calculates Part A premium costs by how long you or your spouse have paid Medicare taxes.
Here is an explanation of monthly premiums for Part A in 2025:
$0/mo.
If you or your spouse paid Medicare taxes for 10 years or more
$285/mo.
If you or your spouse paid Medicare taxes for more than 7.5 years but less than 10
$518/mo.
If you paid Medicare taxes for fewer than 7.5 years
Medicare Part A Deductible
Every year, Part A sets a deductible for inpatientInpatient refers to medical care that requires admission to the hospital, usually overnight. care. When you stay at a hospital, skilled nursing facilitySkilled nursing facilities provide in-patient extended care with trained medical professionals to recover from injury or illness and activities of daily living. These facilities provide physical and occupational therapists, speech pathologists and medical professionals assist with medications, tube feedings and wound care. Skilled nursing stays are usually covered under Medicare Part A. , or another covered healthcare facility, your costs must exceed the deductible before Part A coverage kicks in.
For 2025, the Part A deductible increased from 2024:
- Medicare Part A deductible 2024: $1,632
- Medicare Part A deductible 2025: $1,676
Medicare Part A Coinsurance
Your Part A deductible covers the first 60 days of inpatient care in a hospital or the first 20 days in a skilled nursing facility. For longer stays, you’re responsible for a daily coinsuranceCoinsurance is the percentage of your medical costs that you pay after you meet your deductible. Your insurance company pays the remaining amount. For example: If you have a $1,000 medical bill and your coinsurance is 20%, you’ll pay $200. Your insurance company will cover the final $800. amount. If you stay in the hospital for more than 90 days, you begin to use your 60 lifetime reserve days.
The Medicare Part A coinsurance rates for hospital stays in 2025 are:
- Days 0-60: $0
- Days 61-90: $419 per day
- Lifetime reserve days: $838 per day
For skilled nursing care, your daily coinsurance amount is $209.50 for days 21-100.
How Much Does Medicare Part B Cost?
You will pay a monthly premium for Medicare Part B and need to meet an annual deductible before insurance begins to pay for medical services.
Medicare Part B Premiums
The Medicare Part B premium changes each year and is calculated based on data collected by the Centers for Medicare and Medicaid Services (CMS). The standard amount for Part B coverage in 2025 is $185 per month.
How does the 2025 Medicare Part B premium stack up? Here’s a breakdown:
- Medicare Part B premium 2021: $148.50
- Medicare Part B premium 2022: $170.10
- Medicare Part B premium 2023: $164.90
- Medicare Part B premium 2024: $174.70
- Medicare Part B premium 2025: $185
If your income is high enough, you may pay more for your Part B premium each month. Medicare measures your modified adjusted gross income to determine your income level. Depending on how much money you make, you may have to pay an Income Related Monthly Adjustment Amount (IRMAA) on top of your Part B premium. While most people pay the standard amount, an IRMAA can make your premium payment balloon up to as much as $628.90 per month.
If your individual or joint income is above the standard bracket, you may pay an Income-Related Monthly Adjustment (IRMAA)Income-Related Monthly Adjustments determine the premium costs for Medicare Part B and Part D based on your income. . Find your IRMAA rate for 2025 below:
Annual income: Individual (up to $106,000) & Joint (up to $212,000)
- IRMAA: $0
- Part B premium: $185
Annual income: Individual ($106,000 to $133,000) & Joint ($212,000 to $266,000)
- IRMAA: $74
- Part B premium: $259
Annual income: Individual ($133,000 to $167,000) & Joint ($266,000 to $334,000)
- IRMAA: $185
- Part B premium: $370
Annual income: Individual ($167,000 to $200,000) & Joint ($334,000 to $400,000)
- IRMAA: $295.90
- Part B premium: $480.90
Annual income: Individual ($200,000 to $500,000) & Joint ($400,000 to $750,000)
- IRMAA: $406.90
- Part B premium: $591.90
Annual income: Individual ($500,000 and above) & Joint ($750,000 and above)
- IRMAA: $443.90
- Part B premium: $628.90
Part B Late Enrollment Penalty
The last factor that determines your Part B premium amount is when you sign up. If you enroll as soon as you’re eligibleSome health plans require you to meet minimum requirements before you can enroll. for Part B, your monthly premium will follow the formulas above.
If you sign up later and don’t have coverage from another source (such as an employer-sponsored health plan), you may pay a 10% penalty for each 12-month period you missed. If you enroll at 67 (when eligible at 65), your monthly premium payment will be 20% higher than the table above.
How Do I Pay My Part B Premium?
Your Medicare Part B premium is a monthly payment. It can be deducted automatically if you receive benefits from:
- Social Security
- Railroad Retirement Board (RRB)
- The Office of Personnel Management (federal government)
Medicare Part B Deductible
Before your Medicare Part B coverage kicks in, your medical costs must exceed the annual deductible (not counting the amount you pay in monthly premiums). Like your premium, the deductible adjusts each year.
- Medicare Part B deductible 2022: $233
- Medicare Part B deductible 2023: $226
- Medicare Part B deductible in 2024: $240
- Medicare Part B deductible in 2025: $257
Medicare Part B Coinsurance
Once you meet the deductible, you’ll pay 20% of the Medicare-approved amount for most services and durable medical equipment.
What Medicare Advantage coverage is right for my specific situation?
FAQ
Does my health play any role in my Original Medicare costs?
No. If you’re enrolled in Original Medicare (Parts A and Part B), your health won’t play a role in how much you pay for your Medicare coverage. Part A is determined by how long you paid Medicare taxes. For Part B, all enrollees pay the same deductible while premiums are calculated using income and whether you signed up on time.
What if I can't afford Part B?
If you’re at least 65 and can’t afford your Medicare Part B premium or deductible, there may be help. Medicare Savings ProgramsMedicare Savings Programs help those with low incomes pay premiums and sometimes coinsurance for Medicare expenses. (MSP) are designed for low-income individuals who have trouble affording healthcare. To help you get started, here are the four types of MSPs:
- Qualified Medicare Beneficiary Program (QMB): helps pay premiums, copays, deductibles and coinsurance for Parts A and B.
- Specified Low Income Medicare Beneficiary Program (SLMB): helps pay Part B premiums.
- Qualifying Individual Program (QI): helps pay Part B premiums.
- Qualified Disabled and Working Individual Program (QDWI): helps pay Part A premiums for disabled people that have returned to work.
When can I enroll in Plan A and Plan B?
Your first chance to sign up for Original Medicare is during your Initial Enrollment Period (IEP)The Initial Enrollment Period (IEP) is the seven-month period around your 65th birthday when most people are eligible for the first time to enroll in Medicare. . To figure out your IEP, follow the seven-month rule; your enrollment window includes the three full calendar months before the month you turn 65. It remains open during your birth month, and the three months after. For example: If your birthday is in June, your seven-month window will open Mar. 1 and close Sept. 30.
3 months before your 65th birthday: May, April, March
Your birth month: June
3 months after you turn 65: July, August, September
If you missed your IEP, there are other enrollment periods available. You may be eligible for a Special Enrollment Period due to a Qualifying Life Event (QLE)Qualifying Life Events (QLE) are life changes that allow you to enroll in a new health insurance plan during a Special Enrollment Period. These include having or adopting a child, losing other coverage, marriage, a change of income and moving. . There is also a designated time to change your Medicare plan. Learn all about Medicare’s different enrollment periods — and how GoHealth can help you.
How does Medicare calculate my Part B premium and Income Related Monthly Adjustment Amount (IRMAA)?
When you enroll, your IRMAA, if you pay one, will be based on your tax returns from two years prior. That year’s income will be used to determine how much IRMAA you’ll have to pay each month on top of your Part B premium. For example, 2025 Part B premiums are based on 2023 tax returns.
Do Original Medicare costs remain the same after I enroll? Or do they increase each year?
Your Original Medicare costs will change each year based on data collected by the Centers for Medicare and Medicaid Services (CMS). This generally means increases in your premiums and deductibles. Part B coinsurance typically remains at 20% of Medicare-approved costs each year.
Sources
- Medicare costs at a glance. Medicare.gov.
- Medicare Savings Programs. Medicare.gov.