Medicare FAQ

What Does Medicare Cost?

Most people pay $0 in premiums for Part A. Part B costs $202.90 per month in 2026, plus a $283 annual deductible. Beyond that, costs depend on whether you add Medicare Advantage, a Part D drug plan, or a Medigap supplement.

What Does Part A Cost?

Part A (hospital insurance) is premium-free for most people, based on having paid Medicare payroll taxes for at least 10 years (40 quarters) through work history — yours or a spouse's. If you don't meet that threshold, you may pay a monthly premium for Part A instead.

What Does Part B Cost?

Most people pay the standard Part B premium of $202.90 per month in 2026, plus an annual deductible of $283 before Medicare starts covering its share of outpatient costs. Higher-income beneficiaries pay more through an income-related adjustment (IRMAA), determined by your tax return from two years prior.

How Much Does a Medicare Advantage or Medigap Plan Cost?

Medicare Advantage (Part C) plans often have low or $0 premiums, but you'll typically pay copays and coinsurance as you use care, up to an annual out-of-pocket maximum. Medigap plans generally carry a higher fixed monthly premium — the tradeoff is very low, predictable costs when you actually need care, since Medigap covers most of Original Medicare's cost-sharing gaps.

What About Prescription Drug Costs?

Part D plan premiums vary by plan and carrier. As of 2026, Part D has a $2,100 annual out-of-pocket cap — once you hit it, your covered medications are $0 for the rest of the calendar year, a significant change from prior years' coverage gap structure.

Are There Ways to Lower My Medicare Costs?

If your income is limited, a Medicare Savings Program (MSP) may help cover your Part B premium and other cost-sharing, and could also qualify you for Extra Help with Part D drug costs. Beyond assistance programs, comparing plans carefully each year during AEP — rather than staying on autopilot — is one of the most reliable ways to avoid overpaying for coverage that no longer matches your needs.

Why Do Costs Vary So Much Between People?

Part A and Part B premiums are largely standardized (aside from IRMAA for higher earners), but everything beyond Original Medicare — your Medicare Advantage, Part D, or Medigap choice — is where costs diverge. Two people in the same county with the same health needs can end up with very different total costs simply based on which plan they chose, which is why comparing your specific options matters more than looking at national averages.