Medicare Part A and B Cost Basics
Key Takeaways
- 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. for enrollees who 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.
- Medicare Part A and Part B cover most of your healthcareHealthcare is the industry dedicated to maintaining or improving health and well-being. services (hospital and medical). 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). .
What Do Medicare Part A and Part B Premiums Cover?
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. .
Parts A and B provide different coverage:
Part A
Hospital Insurance
- Hospital stays
- Skilled nursing facility stays
- Some home health
- And more
Part B
Medical Insurance
- Doctors’ services
- Outpatient therapies
- Durable medical equipment
- And more
Parts A and B are also different in cost. If you are new to Medicare, we have answers to 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. Here are some essential facts about Part A and what it costs.
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
Most Part A costs come from the inpatientInpatient refers to medical care that requires admission to the hospital, usually overnight. hospital deductible. Inpatient care provided at a hospital or 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. will require you to pay the annual deductible.
For the year 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 Co-insurance
Your Part A deductible will cover the first 60 days of inpatient care. 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 beyond 60 days. The type of facility and how long you stay affect the daily coinsurance amount.
Part A coinsurance increases when your length of stay in a facility increases:
- 0 to 60 days
- 61 to 90 days
- You have a lifetime limit of reserve days to use if your stay lasts longer than 90 days.
Medicare Part A daily coinsurance rates for 2025:
- Days 0-60: $0
- Days 61-90: $419 per day
- Lifetime Reserve Days: $838 per day
If you need skilled nursing care, your daily coinsurance amount is $209.50 for days 21-100.
How Much Does Medicare Part B Cost?
Your monthly premiums and annual deductible help make up the cost of Medicare Part B.
Medicare Part B Premiums
Each year, Medicare Part B premiums can go up or down. 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
Your income plays a part in your Part B premium. For 2025, individuals making $106,000 per year or less, and married couples making $212,000 or less, pay the standard monthly amount of $185 each.
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, 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.
Medicare Part B Deductible
All Medicare enrollees pay the same monthly deductible. Like your premium, the annual deductible adjusts each year. For example:
- 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 your deductible, you’ll pay 20% of the Medicare-approved amount for a variety of services and durable medical equipment.
What Medicare coverage is right for my specific situation?
What Else Should I Consider?
After enrolling in Original Medicare (Parts A and B), you have other options:
Medicare Advantage: Also called Medicare Part CMedicare Advantage (Medicare Part C) is health insurance for Americans aged 65 and older that blends Medicare benefits with private health insurance. This typically includes a bundle of Original Medicare (Parts A and B) and Medicare Prescription Drug Plan (Part D). , these plans from private insurance carriers substitute for Original Medicare. Medicare Advantage plans may offer additional benefits like dental, vision, and prescription drug coverage. These plans are regulated by Medicare but provided through private insurance companies.
Medigap: Medicare Supplement Insurance (Medigap)Medicare Supplement Insurance (Medigap) is designed to provide coverage that Original Medicare (Parts A and B) does not. Medigap policies are purchased in addition to Original Medicare and have their own monthly premiums you’ll need to pay. fills the holes in your policy that aren’t covered by Original Medicare. These are purchased in addition to your Medicare coverage and are offered by private insurance companies.
Medicare Part D: Standalone, private prescription drug insurance that works with Original Medicare. With Medicare Prescription Drug Plan (Part D)Medicare Part D is prescription drug coverage for people enrolled in Medicare. Part D is optional and is offered by private insurance companies. , you can enroll at the same time as Original Medicare, or during the Medicare Open Enrollment Period each year from October 15 to December 7.
Medicare & Medicaid: MedicaidMedicaid is a state-based health insurance program for individuals that qualify. Unlike Medicare, Medicaid does not have age restrictions for members. is a public health insurance option designed for people with low-income or limited resources. If you qualify for both Medicare and Medicaid, you are considered dual eligibleDual eligible individuals qualify for both Medicare and Medicaid. and can receive greater financial assistance.
FAQ
Does my health play any role in my Original Medicare costs?
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, and their most-recent eligibility requirements from 2024:
- Qualified Medicare Beneficiary Program (QMB): helps pay premiums, copays, deductibles and coinsurance for Parts A and B.
- Who’s eligible: individuals with income up to $1,275 per month; couples making up to $1,724
- Specified Low Income Medicare Beneficiary Program (SLMB): helps pay Part B premiums
- Who’s eligible: individuals making up to $1,526 per month; couples making up to $2,064
- Qualifying Individual Program (QI): helps pay Part B premiums
- Who’s eligible: individuals making up to $1,715 per month; couples making up to $2,320
- Qualified Disabled and Working Individual Program (QDWI): helps pay Part A premiums for disabled people that have returned to work
- Who’s eligible: individuals making up to $5,105 per month; couples making up to $6,899
If you need help finding an affordable Medicare plan, contact GoHealth. Our licensed insurance agents can help you navigate the different options and see what makes the most sense for you.
When can I enroll in Plan A and Plan B?
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.
Sources
- Medicare costs at a glance. Medicare.gov.
- Medicare Savings Programs. Medicare.gov.
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