How Much Does Medicare Cost? Premiums & Expenses

Most people with Medicare pay $202.90 a month for Part B in 2026 and get Part A without a premium.

But premiums are only part of the bill.

Deductibles, coinsurance, drug costs, and the coverage you add on top of Medicare decide what you actually spend in a year.

Medicare Costs at a Glance

Source: CMS 2026 Medicare Parts A & B Premiums and Deductibles fact sheet; Part D figures from CMS's 2026 Part D standard benefit parameters.

These are the standard Medicare costs, but your total annual spending depends on the coverage you choose and the care you receive.

How Much Do Medicare Parts A and B Cost?

Part A (hospital insurance)

Most people pay no monthly premium for Part A because they or a spouse worked and paid Medicare taxes for at least 40 quarters (about 10 years).

If you have 30–39 quarters, the Part A premium is $311 a month in 2026. With fewer than 30 quarters, it's $565.

The bigger Part A costs show up when you're admitted to the hospital:

• Days 1–60: $1,736 deductible per inpatient benefit period
• Days 61–90: $434 per day
• Lifetime reserve days: $868 per day
• Skilled nursing facility, days 21–100: $217 per day

The deductible applies per benefit period, not per admission. A benefit period ends once you go 60 consecutive days without receiving inpatient hospital care or qualifying skilled nursing facility care.

A second admission within that window doesn't trigger a new deductible. But a benefit period isn't a calendar year, so you could pay the deductible more than once in a year.

See what Medicare Part A covers for the services behind these costs.

Part B (medical insurance)

Part B has a monthly premium for nearly everyone. The standard amount is $202.90 in 2026.

After the $283 annual deductible, you generally pay 20% of the Medicare-approved amount for doctor visits, outpatient care, and durable medical equipment.

Some services cost less. Many Medicare-covered clinical lab tests and most preventive services cost you nothing when your provider accepts assignment.

If a doctor doesn't accept Medicare assignment, they can charge up to 15% more than the approved amount. These are called Part B excess charges.

For a breakdown of covered services, see what Medicare Part B covers.

What Does Medicare Actually Cost Per Month and Per Year?

Here's how premiums compare for three common coverage setups, shown monthly and annually.

Illustrative figures using the standard Part B premium, an example $180/month Plan G premium, and an example $30/month Part D premium. Actual Medigap and Part D premiums vary by age, location, and plan. Annual premiums exclude deductibles, copays, coinsurance, and other out-of-pocket costs.

The difference in premiums is only the starting point.

Someone with Original Medicare alone could pay significantly more if they need frequent outpatient care, because there's generally no annual limit on Part A and Part B cost-sharing.

Standard Plan G generally covers Medicare-approved Part A and Part B cost-sharing after the Part B deductible.

That $283 isn't a formal out-of-pocket maximum. Premiums, prescriptions, and services Medicare doesn't cover are still separate costs.

Medicare Advantage plans limit annual spending on covered Part A and Part B services, but the limit varies by plan and can be several thousand dollars.

Want to see real Medigap premiums for your age and ZIP code instead of the example above? Plan G pricing is covered in detail in our Plan G cost guide and average Medigap cost breakdown.

What Medicare Costs Do You Pay Out of Pocket?

Out-of-pocket costs are what you pay when you actually use care. These terms come up on every Medicare bill:

• Deductible: what you pay before Medicare or your plan starts paying its share
• Coinsurance: a percentage of the cost you pay after the deductible, such as Part B's 20%
• Copay: a flat dollar amount for a service, common in Medicare Advantage and Part D
• Out-of-pocket maximum: a yearly ceiling on what you pay for covered services, if your coverage has one

Prescription drug costs (Part D)

Original Medicare doesn't cover most outpatient prescriptions, so most people add a stand-alone Part D plan or get drug coverage through a Medicare Advantage plan.

In 2026, Part D deductibles can be up to $615, and out-of-pocket spending on covered drugs is capped at $2,100 for the year.

Premiums, copays, and which drugs are covered vary by plan. Our Part D guide explains how the coverage stages work.

Annual limits by coverage type

A few Medigap plans work differently. Plans K and L have their own annual out-of-pocket limits, and High-Deductible Plans F and G require you to meet a deductible before they pay.

See our High-Deductible Plan G guide or the Medigap comparison chart for current amounts.

What Factors Affect Your Medicare Costs?

• Your income: higher earners pay more for Part B and Part D (IRMAA)
• Your work history: fewer than 40 quarters of Medicare taxes means a Part A premium
• When you enroll: late enrollment can add lifelong penalties to Part B and Part D premiums
• The coverage you add: Medigap, Medicare Advantage, and Part D change both premiums and out-of-pocket exposure
• Your age and location: Medigap premiums vary by ZIP code and often rise with age
• How much care you use: frequent treatment matters most when your coverage has high cost-sharing

Income-related premiums (IRMAA)

If your income is above certain levels, you pay an income-related monthly adjustment amount (IRMAA) on top of the standard Part B and Part D premiums.

For 2026, Medicare uses your 2024 tax return to decide.

IRMAA is based on modified adjusted gross income (MAGI), not your salary or take-home pay. MAGI is your adjusted gross income plus any tax-exempt interest.

The Part D surcharge is added to your plan's own premium. Different brackets apply to married people who file separately. Source: CMS 2026 fact sheet.

Only about 8% of Part B enrollees pay IRMAA.

If your income dropped because of retirement or another life-changing event, you can ask Social Security to reconsider using more recent income.

Social Security explains how IRMAA is calculated on its official IRMAA page.

Can You Get Help Paying Medicare Costs?

Yes. People with limited income and savings may qualify for programs that lower or cover Medicare costs:

• Medicare Savings Programs: run by your state; can pay Part B premiums and, for some people, deductibles and coinsurance
• Extra Help: lowers Part D premiums, deductibles, and drug copays
• Medicaid: can cover costs Medicare doesn't for people who qualify for both

Income and asset limits vary by state. Your State Health Insurance Assistance Program (SHIP) offers free, unbiased help checking eligibility.

If you're deciding whether extra coverage fits your budget at all, see do you really need supplemental insurance with Medicare?

How Can You Estimate Your Total Medicare Costs?

1. Start with fixed premiums: Part B, plus any Part A, Medigap, Medicare Advantage, or Part D premium. Multiply by 12.
2. Add expected medical costs: estimate doctor visits, specialists, tests, and any planned procedures under the coverage you're considering.
3. Add prescription costs: enter your drug list in Medicare's Plan Finder to see real annual costs by plan.
4. Check your worst-case year: add the plan's out-of-pocket maximum (or lack of one) to your premiums, and make sure you could afford that total.

Our Medigap cost calculator can help with step 1 if you're considering a Medicare Supplement.

Still weighing coverage types? Compare Original Medicare vs. Medicare Advantage or read how I help clients decide between Medicare Advantage and Medigap.

Bottom Line

Medicare costs are more than monthly premiums.

When comparing coverage, calculate your annual premiums, expected medical expenses, prescription costs, and potential out-of-pocket exposure.

The lowest monthly premium won't always produce the lowest annual healthcare spending.

Questions about your own numbers? Call (888) 414-4547 or compare rates in your ZIP code.