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How much does Medicare cost?

Medicare costs vary depending on your situation and each part of Medicare may have a different cost. This section will explain the costs sometimes associated with each part of Medicare (A, B, C, D, and supplemental plans).

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Part A

Most people qualify for their Medicare Part A premium to be free.

Part A is free for people who:

Are 65 and have worked at least 10 years (40 quarters) and paid into Medicare
Are under 65 but have been receiving disability benefits for 24 months

If you don't qualify for premium-free Part A, it will cost

$499 a month if you worked less than 30 quarters
$274 a month if you worked less than 30-39 quarters

In most cases, if you choose to buy Part A, you must also:

Have Medicare Part B (Medical Insurance)
Pay monthly premiums for both Part A and Part B

If you sign-up late for Part A, you may have to pay a 10% penalty for twice as many 12 months periods as you went without signing up.

Example: Signed up 2 years late for Part A, you will pay a 10% penalty for both years (about 20%) for 4 years.

Part B

Medicare Part B premiums vary depending on your household income. Some people may qualify for help to pay their Medicare Part B premium through their state’s Medicaid program.

If you sign-up late for Part B, you may have to pay a 10% penalty for each year you didn’t sign up FOR THE REST OF YOUR LIFE.

If you’re yearly income in 2020 (for what you will pay in 2022) was…
$91,000 for individuals, $182,000 for joint tax return, $91,000 filing separately: you will pay $170.10 each month
$114,000 for individuals, $228,000 for joint tax return, not applicable is filing separately: you will pay $238.10 each month
$142,000 for individuals, $284,000 for joint tax return, not applicable is filing separately: you will pay $340.20 each month
$170,000 for individuals, $340,000 for joint tax return, not applicable is filing separately: you will pay $442.30 each month
$500,000 for individuals, $750,000 for joint tax return, $91,000-$409,000 filing separately: you will pay $544.30 each month
Above $500,000 for individuals, above $750,000 for joint tax return, above $409,000 filing separately: you will pay $578.30 each month

Some people may choose to sign up for a Medicare Part B supplement plan to help cover costs not covered by Part A or B. These plans are known as Medigap Plan. Costs for these plans vary by company.

Part C

Part C costs vary depending on the plan you choose.

Medicare Part C is a way of combining A, B and mostly D with a private insurance company that makes it function like private and employer insurance. If you sign up for Part C, you will still need to pay your Part B premium in addition to any monthly premiums for your Part C plan. Part C functions like regular private insurance with deductibles, coinsurance and out-of-pocket maximums. Most plans include the added benefit of dental and vision insurance since these are not covered in either Part A or B. These plans tend to be more restrictive regarding where you can go for care and how services are covered.