Medicare Costs Per Year

The cost of Medicare is not one-size-fits-all. The annual costs of this government program can vary greatly due to a number of different factors. We’ll do our best to try to narrow it down as much as possible to give you an idea of what you might expect to pay for Medicare.

For starters, Medicare is made up of four different parts (Part A, Part B, Part C and Part D). We’ll break down the expenses associated with each part.

Doctor with clipboard

Part A costs

Medicare Part A — also known as hospital insurance — does not carry a premium if you’ve paid Medicare taxes for at least 10 years. If you haven’t paid enough taxes and want Part A coverage, you can buy it for a monthly premium.

For 2019, the standard monthly Part A premium is $240 if you paid Medicare taxes for between 7.5 and 10 years, and $437 per month if you paid Medicare taxes for fewer than 7.5 years.

Part A also has an $1,364 deductible for every benefit period in 2019. If you’re in the hospital for an extended period of time (more than 60 days in a benefit period), you may also be responsible for paying coinsurance.

Part B costs

Medicare Part B carries a monthly premium. The monthly premium for Part B is based on your income reported on your tax return from two years prior. 2019 premiums are based on reported incomes in 2017.

The higher your income, the higher your Part B as this table demonstrates:

2017 income (for individual tax return filings)

2017 income (for jointly filed tax returns)

2017 income (for married and separate tax returns)

Monthly Cost for Medicare Part B in 2019

$85,000 or less

$170,000 or less

$85,000 or less

$135.50

$85,001 to $107,000

$170,001 to $214,000

N/A

$189.60

$107,001 to $160,000

$214,001 to $320,000

N/A

$270.90

$160,001 to $499,999

$320,001 to $749,999

$85,001 to $414,999

$433.40

More than $500,000

More than $750,000

More than $415,000

$460.50


Other Part B costs include:

  • Deductible – The annual deductible for Part B is $185 per year in 2019.
  • Coinsurance – Once you’ve met your deductible, you can typically expect to pay 20 percent of the approved amount for most services.
  • Late enrollment penalty – It’s important to sign up for Part B when you’re first eligible. If you don’t, you’ll pay 10% on top of your premium for each 12-month period you qualified for Part B but didn’t enroll.

Part C costs

The costs associated with Part C — known as Medicare Advantage — are harder to predict because they vary by plan. While every Medicare Advantage plan must provide the same benefits that Part A and Part B (Original Medicare) provide, other benefits can vary.

These additional benefits may include coverage for dental, hearing and vision care, as well as prescription drug coverage.

The average premium for a Medicare Advantage plan with prescription drug coverage will be $40 per month in 2019.*

The cost of these plans can vary based on the amount and type of coverage as well as: 

  • Location
  • Deductible amounts
  • Amounts of copayments or coinsurance
  • Network restrictions
  • Out-of-pocket limits

Part D costs

Medicare Part D provides coverage for prescription drugs. You can add a Prescription Drug Plan — sold by private insurance companies — to your Original Medicare coverage. Like Medicare Advantage plans, the costs associated with PDPs can vary greatly because of many of the same factors. Many Medicare Advantage plans include Part D coverage and are known as MA-PDs.

The Kaiser Family Foundation projects there will be 901 PDPs available in 2019, with an average beneficiary premium of $41.21.**

  • The maximum Part D deductible for 2019 is $415, after which you could be responsible for around 25 percent of the cost of any prescription drugs up to the $3,820 initial coverage limit.
  • After you meet the $3,820 initial coverage limit in 2019, you would fall into the "donut hole" coverage gap (unless you get Medicare Extra Help) until your out-of-pocket spending reaches $5,100.
  • Starting in 2019, you will pay only 25 percent of the cost of brand-name drugs and 37 percent of the cost of generic drugs once you reach the initial coverage limit.
  • Starting in 2020, you will pay only 25 percent of the cost of brand name and generic drugs during the donut hole coverage gap.

Finding the best deal

The official U.S. Government website for Medicare has a free tool you may use to calculate your estimated cost of monthly premiums for Medicare. This can give you an even more accurate measure of what you may be expected to pay.

To find out more about Medicare Advantage plans, connect with a licensed insurance agent today by calling TTY Users: 71124.

Copyright © 2018 TZ Insurance Solutions LLC. All rights reserved.

*Kaiser Family Foundation, “Medicare Advantage 2019 Spotlight: First Look.” Published Oct. 16, 2018. https://www.kff.org/report-section/medicare-advantage-2019-spotlight-first-look-data-note/

**Kaiser Family Foundation, “Medicare Part D: A First Look at Prescription Drug Plans in 2019.” Published October 16, 2018. https://www.kff.org/medicare/issue-brief/medicare-part-d-a-first-look-at-prescription-drug-plans-in-2019/

MedicareAdvantage.com is a website owned and operated by TZ Insurance Solutions LLC. TZ Insurance Solutions LLC and TruBridge, Inc. represent Medicare Advantage Organizations and Prescription Drug Plans having Medicare contracts; enrollment in any plan depends upon contract renewal.

Plan availability varies by region and state. For a complete list of available plans, please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov.

Medicare has neither reviewed nor endorsed this information.