Medicare Costs: Unpacking A, B, C, and D

Anytime you pack for a trip, you don’t want to forget your must-haves: a change of clothes, your passport, and your medications.

It’s the same with your Medicare options. As you consider plans, don’t forget one of the most important “must-haves” — total cost. That includes premiums, deductibles, out-of-pocket spending, and more.

Let’s unpack your Medicare options and take a closer look at costs for Parts A, B, C, and D.

First, a Few Definitions

• Premium: The amount your insurance plan costs. It’s usually paid monthly.
• Deductible: The amount you pay for your health care before your insurance pays. For example, if you have a $2,000 deductible, you pay $2,000 before your insurance coverage kicks in.
• Coinsurance: The percent you pay for health services after you meet your deductible. Say your coinsurance is 20%. After you’ve paid your deductible, if you get a $100 bill from your doctor, you pay 20% or $20. Your insurance pays the rest.
• Benefit Period: For Medicare Part A, the benefit period begins at day one of a hospital or skilled nursing admission. It ends after you are out of the hospital or skilled nursing facility for 60 consecutive days.

Costs for Medicare Part A for 2024

Most people don’t pay a monthly premium for Medicare Part A — but only if they worked and paid Medicare taxes for 10 or more years. Their costs include:

Monthly Part A premium: $0.

But add $278 to the monthly premium if you paid Medicare taxes for only 30 to 39 quarters (7.5 to 9.75 years).

For less than 30 quarters or 7.5 years, add $505.

Hospital inpatient deductible: $1,632.

The deductible applies every benefit period.

You could pay this more than once in a year.

Coinsurance: Medicare covers up to 90 days of inpatient care every benefit period.

• Days 1 to 60: $0
• Days 61 to 90: $408 coinsurance each day
• Days 91 and beyond: $816 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
• Beyond lifetime reserve days: all costs

For example: You have a 120-day hospital stay. Medicare covered 90 days, and you used 30 lifetime reserve days. After you are out of the hospital for 60 days, you start another benefit period and are eligible for another 90 days of hospital coverage. But you then have only 30 lifetime reserve days remaining.

Costs for Medicare Part B for 2024

You’ll pay a late enrollment penalty every month if you sign up for Part B after you’re first eligible. That penalty could go up 10% for each 12-month period you could have had Part B.

Monthly standard Part B premium: The monthly premium for Medicare Part B may change every year. To see the current cost visit Medicare.gov https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf

Monthly Part B premium: $174.70.

The annual deductible for all Medicare Part B enrollees in 2024 will be $240.

Coinsurance: 20% is what you typically pay of the Medicare-approved amount.

Costs for Medicare Part C

For Part C, or Medicare Advantage, costs vary depending on the plan you choose and the location where you live.

Monthly premium: You pay the Medicare Advantage monthly premium if there is one. And you must still pay your standard Medicare Part B premium. Some Medicare Advantage plans have added benefits and may include help paying your Part B monthly premium. It depends though on the plans offered in your location. Not all plans have the same added benefits.

Annual deductible, coinsurance/copays, and out-of-pocket costs:

Visit MedicareSupportCenter.com or MyMedicare.gov You can compare health plan costs in your area after entering your ZIP code.

Costs for Medicare Part D

If you have Original Medicare, you may also want Medicare Part D to cover your prescription drug costs. Even if you don’t take prescription drugs now, you should consider getting Medicare drug coverage. Medicare drug coverage is optional and is offered to everyone with Medicare. If you decide not to get it when you’re first eligible, and you don’t have creditable prescription coverage (like drug coverage from an employer or union) or get Extra Help, you’ll likely pay a late enrollment penalty when you join a plan later. Generally, you’ll pay this penalty as long as you have Medicare drug coverage.

Monthly premium and annual deductible: Visit MedicareSupportCenter.com or MyMedicare.gov After entering your ZIP code, add your prescription drugs. You can compare costs of monthly premiums and deductibles for the prescriptions you use.

Do You Have Everything You Need?

In many ways, Medicare is the trip of a lifetime. Our licensed insurance agents are here with support and guidance for all your must-haves. So, you get the right Medicare plan — at the right cost — for you!

MR544a 2/2024