How Much Does Medicare Cost?
Part A Costs
You usually do not pay a monthly premium for Medicare Part A (Hospital Insurance) coverage if you or your spouse paid Medicare taxes for a certain amount of time while working. This is sometimes called "premium-free Part A."
Most people get premium-free Part A.
You can get premium-free Part A at 65 if:
- You already get retirement benefits from Social Security or the Railroad Retirement Board.
- You are eligible to get Social Security or Railroad benefits but have not filed for them yet.
- You or your spouse had Medicare-covered government employment.
If you are under 65, you can get premium-free Part A if:
- You got Social Security or Railroad Retirement Board disability benefits for 24 months.
- You have End-Stage Renal Disease (ESRD) and meet certain requirements.
Part A premiums
If you do not qualify for premium-free Part A, you can buy Part A.
If you buy Part A, you'll pay up to $458 each month. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $458. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $252.
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
Contact Social Security for more information about the Part A premium.
Part B Costs
Some people automatically get Medicare Part B (Medical Insurance), and some people need to sign up for Part B. Learn how and when you can sign up for Part B.
If you do not sign up for Part B when you are first eligible, you may have to pay a late enrollment penalty.
Part B premiums
You pay a premium each month for Part B. Your Part B premium will be automatically deducted from your benefit payment if you get benefits from one of these:
- Social Security
- Railroad Retirement Board
- Office of Personnel Management
If you do not get these benefit payments, you will get a bill.
Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS.
In 2020, your Part B deductible is $198.00. After you meet your deductible for the year, you typically pay 20% of the Medicare-approved amount for these:
Part B Deductible & Coinsurance
In 2020, your Part B deductible is $198.00. After you meet your deductible for the year, you typically pay 20% of the Medicare-approved amount for these:
- Most doctor services (including most doctor services while you're a hospital inpatient)
- Outpatient therapy
- Durable medical equipment (DME)
Standard Part B Premium & IRMAA
The standard Part B premium amount in 2020 is $144.60. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you will pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
If your yearly income in 2018 (for what you pay in 2020) was:
|
File Individual Tax Return |
File Joint Tax Return |
File Married & Separate Tax Return |
You Pay Each Month (in 2020) |
|
$87,000 or less |
$174,000 or less |
$87,000 or less |
$144.60 |
|
Above $87,000 up to $109,000 |
Above $174,000 up to $218.000 |
Not applicable |
$202.40 |
|
Above $109,000 up to $136,000 |
Above $218,000 up to $272,000 |
Nor applicable |
$289.20 |
|
Above $136,000 up to $163,000 |
Above $272,000 up to #326,000 |
Not applicable |
$376.00 |
|
Above $163,000 and less than $500,000 |
Above $326,000 and less than $750,000 |
Above $87,000 and less than $413,000 |
$462.70 |
|
$500,00 or above |
$750,000 and above |
$413,000 and above |
$491.60 |