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Medicare Costs at a Glance


If you are enrolled in Medicare or will be soon, you likely have asked yourself, how much does Medicare cost? Medicare is not free, and Medicare costs change annually.

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Below, we will go over Medicare costs including premiums, deductibles, coinsurances, and copayments for all parts of Medicare and give you a glimpse at what you can expect to pay out-of-pocket in 2022. Thus, answering the question; How much does Medicare cost?

How Much Does Medicare Cost?

Medicare updates their costs annually. Typically, you will see an increase in Medicare costs year-over-year. However, this usually comes alongside a raise in Social Security benefits.

The Medicare cost increase for 2022 is Medicare’s largest in years and the Social Security benefit raise was larger than normal as well. So, the two even one another out.

To break down these costs, we have put together a chart below of all the out-of-pocket Medicare costs you may pay when enrolled in Medicare. See the chart below for 2022 Medicare costs at a glance.

2022 Medicare Costs at a Glance
Medicare Part A Premium If you or your spouse paid Medicare tax for 40 working quarters (10 years), you qualify for premium-free Medicare Part A. Those who do not meet this requirement could pay up to $499 each month for coverage.
Medicare Part A Deductible and Coinsurance
  • $1,556 deductible for each benefit period of care
  • Inpatient days 1-60: $0; Days 61-90: $389 per day for each period of care; Days 91+: $778 per each lifetime reserve day (you receive 60 lifetime reserve days)
  • Once you exceed Lifetime reserve days, you cover 100% of cost
Medicare Part B Premium Standard Medicare Part B Premium: $170.10. This could be higher based on income (IRMAA applies).
Medicare Part B Deductible and Coinsurance The 2022 annual Medicare Part B deductible is $233. After you meet the deductible, you’re responsible for 20% coinsurance for the Medicare-approved amount for medical services and equipment.
Medicare Part C Premium, Coinsurance, and Deductible The Medicare Part C (Medicare Advantage) premium, coinsurance, and deductible vary by plan.
Medicare Part D Premium, Coinsurance, and Deductible The Medicare Part D (prescription drug plan) premium, coinsurance, and deductible vary by plan, however, the maximum Medicare Part D deductible in 2022 is $480 and IRMAA also applies to Medicare Part D premiums for higher-income earners.

Costs for Medicare Part A

For many, Medicare Part A has a $0 monthly premium. However, depending on how many quarters you paid Medicare tax in the U.S. you may pay a premium of $274 each month or $499 each month. The price you pay is based on the number of years you pay Medicare tax.

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2022 Medicare Part A Costs
Quarters Paying Medicare Taxes  Medicare Part A Monthly Premium
40+ $0
31-39 $274
0-29 $499

In addition to the monthly premium, you will also pay the Medicare Part A deductible for each new benefit period you use Medicare Part A benefits. The Medicare Part A deductible in 2022 is $1,556.

Medicare Costs for Medicare Part B

Your Medicare Part B premium is part of your Medicare cost. The base Medicare Part B premium in 2022 is $170.10. However, that cost is based on your monthly adjusted gross income from the last two years. This can be found on your tax return. If your income exceeds a specific threshold, the standard Medicare Part B cost increase. Thus, higher earners have higher monthly premiums. This is known as IRMAA.

The Income Related Monthly Adjustment Amount (IRMAA) is a predetermined amount added to your monthly Medicare Part B premium based on your income bracket from two tax returns ago.

So, you may be wondering; How much does Medicare cost if I exceed the threshold? To see if your annual income will necessitate a higher premium, refer to the IRMAA chart below for Part B premiums.

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2020 annual income: Individual 2020 annual income: Filing Jointly 2020 annual income: Filing separately Medicare Part B Premium 2022
$0 – $91,000 $0 – $182,000 $0 – $91,000 $170.10
$91,001 – $114,000 $182,001 – $228,000 $238.10
$114,001 – $170,000 $228,001 – $284,000 $340.20
$142,001 – $170,000 $284,001 – $340,000 $442.30
$170,001 – $500,000 $340,001 – $750,000 $91,001- $409,000 $544.30
> $500,001 + $750,001 + $409,001 + $587.30

If you are assessed an IRMAA charge as part of your Medicare costs and recently had a decrease in income due to an event such as retirement or the loss of your spouse, you can file an IRMAA appeal for your local Social Security department to review.

Along with the monthly premium, you will want to be aware of the Medicare Part B deductible. For 2022, the Medicare Part B deductible amount is $233. This means, you will need to pay the first $233 of your health care costs out-of-pocket before your Medicare Part B benefits will kick in.

Medicare Supplement Plans to Help Lower Medicare Costs

Medicare Supplement plans help cover the left-over costs from Original Medicare (Medicare Part A and Part B). So, Medicare Supplement plans help lower your overall Medicare costs.

There are 10 unique Medicare Supplement plans available each identified by a different letter. Each plan has a different cost due to its benefits. For example, Medicare Supplement Plan G costs more than Medicare Supplement Plan K because Plan G offers more comprehensive benefits. The overall average cost for a Medicare Supplement plan in 2022 is $163.

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Medicare Supplement plans have standardized benefits throughout the country. This means that your Medicare costs such as out-of-pocket costs from a Medicare Supplement plan with the same letter identifier are the same in Vermont as they are in Oregon, Arkansas, or North Carolina.

The only Medicare cost that is not standardized by Medicare Supplement plans is the monthly premium cost. This cost is determined by each individual carrier and is based on your age, ZIP Code, tobacco-use status, and in some cases your health. There are several other factors your premium may be based on; however, each carrier has their own set of standards when determining premium.

Medicare Costs Vary For Medicare Advantage Plans

All Medicare Advantage plans have different Medicare costs including premium, copay, deductible, and coinsurance amounts. The average Medicare Advantage monthly premium is $62.66. However, many Medicare Advantage plans across the country have a $0 premium or a low monthly Medicare cost in general.

While this coverage with low Medicare costs can seem appealing to many Americans, you want to be sure that you are looking at the full costs of Medicare including premiums, out-of-pocket costs, and more. Saving on the premium is a great perk. However, these Medicare Advantage plans often come with high maximum out-of-pocket limits, as well as doctor and hospital restrictions.

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Due to these hidden Medicare costs and restrictions with Medicare Advantage plans, you might find lower Medicare costs by signing up for a Medicare Supplement plan with a higher monthly premium and lower out-of-pocket costs. You will also be able to use any doctors as Medicare Supplement plans have no network restrictions.

Medicare Costs for Medicare Prescription Drug Plans

Just like Medicare Part B, Medicare Part D may have varying Medicare costs as the plan charges high-income earners higher monthly premiums. Thus, you may see an increase in your monthly Medicare Part D premium as compared to what Medicare.gov lists if your income exceeds the set amount.

2020 annual income: Individual 2020 annual income: Filing Jointly 2020 annual income: Filing separately Medicare Part D Premium 2022
$0 – $91,000 $0 – $182,000 $0 – $91,000 Plan Premium
$91,001 – $114,000 $182,001 – $228,000 Plan Premium + $12.40
$114,001 – $170,000 $228,001 – $284,000 Plan Premium + $34.10
$142,001 – $170,000 $284,001 – $340,000 Plan Premium + $51.70
$170,001 – $500,000 $340,001 – $750,000 $91,001- $409,000 Plan Premium + $71.30
> $500,001 + $750,001 + $409,001 + Plan Premium + $77.90

Let’s break down the Medicare costs for Medicare Part D further. The national base beneficiary premium for Medicare Part D in 2022 is $33.37. Then, the maximum deductible for any Medicare Part D policy is $480. However, each Part D plan is different. Some Medicare Part D prescription drug plans have deductibles as low as $0.

The medication you take will determine the best Medicare Part D plan for you. Within your Medicare Part D plan, drug tiers will determine the cost for your medications. Typically, higher specialty tier drugs cost the most and lower-tier medications are available at a lower cost. While in the donut hole, you’ll pay more than usual for your medications. However, not everyone falls into this coverage gap.

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Medicare Costs FAQs

How much is deducted from Social Security for Medicare?
Generally, the amount taken out is equivalent to your Medicare Part B Medicare premium. Those with higher incomes may have more taken out of their check than those with lower incomes. You also have the option to deduct Medicare Part C or Part D costs from your Social Security benefit.
How much does Medicare cost per month?
The answer to this question is different for everyone. People who qualify for Medicaid and premium-free Medicare Part A could pay a very small amount each month. But, someone who didn’t pay into Medicare will pay $499 for Medicare Part A each month, on top of Medicare Part B costs, which are greater for those with a higher income.
How much does Medicare cost monthly?
Medicare costs vary per individual and for each Part of Medicare. See the chart above for the standard monthly premiums for the main Parts.

How to Find Out More About Medicare Costs in 2022

It is important to understand how much Medicare costs each year so you can budget for your health care. In retirement, insurance should not have to be top-of-mind – let us handle it for you. Give us a call to learn more about your Medicare costs and all the coverage options available to you.

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Sources:

MedicareFAQ is dedicated to providing you with authentic and trustworthy Medicare information. We have strict sourcing guidelines and work diligently to serve our readers with accurate and up-to-date content.

  1. Medicare Costs at a Glance, Medicare. Accessed July 2022.
    https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
  2. Medicare Costs, Medicare. Accessed July 2022.
    https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf
  3. What Does Medicare Cost, Medicare. Accessed July 2022.
    https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/what-does-medicare-cost

Jagger Esch

Jagger Esch is the Medicare expert for MedicareFAQ and the founder, president, and CEO of Elite Insurance Partners and MedicareFAQ.com. Since the inception of his first company in 2012, he has been dedicated to helping those eligible for Medicare by providing them with resources to educate themselves on all their Medicare options. He is featured in many publications as well as writes regularly for other expert columns regarding Medicare.

2 thoughts on “Medicare Costs at a Glance

  1. My father is a veteran and goes to the VA for all his medical needs. Does he still have to pay for Medicare part B. He has dental, vision with his VA benefits and it covers his medications too.

    1. Hi Denise, Part B doesn’t include dental, vision, or prescription drug coverage. It is outpatient insurance that your father can use at civilian facilities. We recommend he sign up for Part B, or he could incur a late enrollment penalty because VA benefits are not creditable for Medicare and are only accepted at VA facilities. He can have VA benefits at the same time as Medicare to cover services at a VA facility and everything else for which he currently uses the coverage.

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