To help you navigate these options and find the best plan for your needs, we’ve teamed up with Chapter to provide personalized, 1-1 guidance.


Navigating Medicare can be challenging, especially when it comes to understanding the associated costs. Having a clear idea of what to expect can help you budget wisely and make informed choices about your coverage. Let’s break down the essential cost components to help you better understand Medicare.

Medicare Part A Costs

Medicare Part A primarily covers hospital stays, skilled nursing facility care, hospice care, and some home health services. Most people don't pay a premium for Part A if they or their spouse have paid Medicare taxes for at least 10 years (40 quarters). However, there are still some costs associated with Part A:

  • Deductible: For each benefit period, you will need to meet a deductible before Medicare starts to pay. In 2024, this deductible is $1,632.
  • Coinsurance: After you’ve met the deductible, you may still have to pay coinsurance for extended hospital stays. For example, you pay $0 for the first 60 days of each benefit period, but for days 61-90, you’ll owe $408 per day.

Medicare Part B Costs

Medicare Part B covers outpatient care, such as doctor visits, preventive services, and some medical equipment. Unlike Part A, most people do pay a premium for Part B. Here are the main costs:

  • Premium: The standard Part B premium in 2024 is $174.70 per month. However, if your income is above a certain threshold, you may pay more.
  • Deductible: The Part B deductible for 2024 is $240. After meeting this, Medicare typically covers 80% of approved services, leaving you responsible for 20% of the costs.
  • Coinsurance: There’s generally a 20% coinsurance for most services after you’ve met the deductible, which can add up if you require frequent medical care. 

Medicare Part D Costs

Medicare Part D is the prescription drug coverage, and its costs can vary widely depending on the specific plan you choose. Key expenses include:

  • Premium: Part D premiums vary by plan but average around $55.50 per month in 2024.
  • Deductible: Many plans have a deductible, which can be up to $545 in 2024. You must pay this amount out-of-pocket before your plan starts to share the cost of your medications.
  • Copayments/Coinsurance: After meeting the deductible, you’ll generally pay a copayment or coinsurance for your prescriptions. The amount varies by the tier of the medication (generic, brand-name, etc.).

Medicare Advantage (Part C) and Supplement Plans

If you choose a Medicare Advantage Plan (Part C), your costs might differ from Original Medicare. These plans often include additional benefits like vision, dental, and prescription drugs, but they come with their own set of premiums, copayments, and out-of-pocket limits. The specific costs will depend on the plan you choose.

Medicare Supplement Insurance (Medigap) plans help cover some of the out-of-pocket costs not covered by Original Medicare, such as copayments, coinsurance, and deductibles. These plans require a monthly premium, which varies depending on the specific plan and provider. Learn more about Medicare costs.


To help you navigate these options and find the best plan for your needs, we’ve teamed up with Chapter to provide personalized, 1-1 guidance.


Cost Challenges and Assistance

Medicare can still pose significant financial challenges, especially those with limited income. Many beneficiaries face high out-of-pocket costs, including premiums, deductibles, and copayments, which can be a substantial burden.

For low-income individuals, there are programs designed to help alleviate these costs:

  • Medicare Savings Programs (MSPs): These programs help pay for Medicare premiums and may also cover deductibles and coinsurance for those who qualify based on income and resources.
  • Extra Help: This program assists with the costs of Medicare prescription drug coverage (Part D) for those with limited income and resources.

Managing Your Medicare Costs

Lastly, it’s important to review your Medicare plan annually, especially during the open enrollment period. This is the time to assess whether your current plan still meets your needs or if another option might offer better coverage at a lower cost.

Navigating Medicare can be complex, but it doesn’t have to be overwhelming. Stay informed and proactive about your healthcare coverage. Consider joining one of our Medicare classes on GetSetUp to learn more about how to optimize your Medicare plan and reduce out-of-pocket expenses.

Reviewed By: Keith Gilbert