How much does Medicare cost?

For 2023 Medicare costs, see this Medicare Advocacy Project flyer.

The different Medicare parts each have different costs:

• Premiums are a regular, insurance payment. Most people pay their premiums monthly and the amount stays the same from month to month;
• Deductibles are the amount of money you pay towards medical bills before Medicare starts to help pay;
• Copayments are a share of each medical bill;
• Coinsurance is the amount you may have to share with Medicare after you have paid your deductible. Medicare pays a percent and you pay a percent. Your percent is called coinsurance.

Note

Medicare costs go up almost every year. Figures in this article are all for 2022.

Part A: Hospital insurance

Premiums

• If you or your spouse worked and paid into the Medicare system for at least ten years, Part A has no monthly premium.
• If you get Social Security Retirement benefits or Railroad Retirement benefits, Part A has no monthly premium.
• If neither you nor your spouse paid into the system for at least ten years, you must pay a monthly Part A premium. In 2022, the Part A premium can cost up to $499 per month. The cost of your premium depends on how long you worked and how long you paid into the system.

Deductibles, co-payments and coinsurance

The other expenses under Medicare Part A are different if go to a hospital, hospice, skilled nursing facility, or you get home health care.

Example

For the first 60 days you are in the hospital, you may pay a $1,556 deductible and no coinsurance. Then, on day 61 up to day 90 you pay $389/day coinsurance.

Part B: Supplementary Medical Insurance

Premiums

In 2022, most people's Part B premiums cost $170.10 per month. If you are single and you make $88,000 a year or you are married and you make $176,000 or more, your premium is more. You can pay up to $578.30 each month.

Deductibles

Your 2022 deductible is the first $233 for Part B-covered services or items.

Copayments and coinsurance

For Part B services, Medicare generally pays 80% of the bill and you pay the remaining 20%.

Part C: Medicare Advantage

If you have a Part C Medicare Advantage plan, you must pay:

1. a Part B premium, and
2. a Part A premium if you have one, plus
3. any premium that your Part C plan charges for extra coverage.

Your Part C plan will also determine the deductible, coinsurance, and copayment rates.

Part D: Prescription Drug Insurance

Premiums

• 2022 Part D monthly premiums in Massachusetts vary greatly, depending on what plan you choose. The monthly average basic national premium for 2022 is estimated to be $33.00.
• Your plan will set your premium amount.
• Your premium will be higher if you are single and you make $88,000 a year or more, or your are married and together you make $176,000, or more.

Deductibles

Part D plans set their own rates; however, Part D plans cannot charge more than $480 for an annual deductible in 2022.

Coinsurance and copayments

• Part D plans set their own coinsurance and copayment rates.
• After you pay your deductible, you may have to pay up to 25% of your drug costs up to $4,430.
• Once you have used $4,430 in drug costs, but you have not spent $7,050, you are in the “coverage gap.” You may have to continue to pay 25% of your drug costs while you are in the “coverage gap.”
• After you have used $7,050, you have reached “catastrophic coverage.” You only have to pay limited costs for the rest of the year. The limits are $3.95 for generic drugs, $9.85 for name-brand drugs, or 5% of any further costs, whichever is higher.