Although Medicare Part A is premium-free for most people, other plans have monthly costs. Medicare beneficiaries pay monthly premiums for Medicare Part B, C, and D. 

Medicare plans also have the following costs to consider:

  • Deductibles – The amount you pay before insurance kicks in
  • Copayments – An up-front cost you pay at the time of service
  • Coinsurance – The percentage covered by insurance after you meet your deductible

Most people qualify for premium-free Medicare Part A coverage by having at least 40 work credits. As of 2023, enrollees with fewer than 30 quarters of work credits must pay $506 per month and those with between 30 and 39 quarters of work credits must pay $278 per month.

Understanding the Cost of Medicare
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The 2023 deductible for Medicare Part A is $1,600 for each benefit period. Beneficiaries do not have coinsurance for hospital and inpatient stays for the first 60 days. Inpatient stays between 61 and 90 days have a $400 coinsurance per day and $800 each day after 90 days for up to 60 days. 

For example, a patient staying in a hospital for 120 days would have the following charges: 

  • $0 coinsurance for days 1 to 60
  • $400 coinsurance for days 61 to 90 ($12,000)
  • $800 coinsurance for days 91 to 120 ($24,000)
  • Total = $36,000

Coinsurance amounts are slightly different for stays at skilled nursing facilities. After $0 coinsurance for the first 20 days, patients will need to pay $200 per day from days 21 to 100. Then, they will need to cover all costs beyond 100 days.  

The premium amount for Medicare Part B depends on enrollees’ incomes two years before applying. For applicants in 2023, for instance, the SSA considers the yearly income for 2021. 

For 2023, the Medicare Part B monthly premiums are as follows:

  • $164.90 for individual filers earning less than $97,000
  • $230.80 for individual filers earning between $97,000 and $123,000
  • $329.70 for individual filers earning between $123,000 and $153,000
  • $428.60 for individual filers earning between $153,000 and $183,000
  • $527.50 for individual filers earning between $183,000 and $500,000
  • $560.50 for individual filers earning more than $500,000 

Medicare Part B has a $226 annual deductible before the 20% coinsurance. Some services are free, such as clinical laboratory, home health, and preventive services.

Medicare Part D also has tiered premium costs based on prior tax filings. Part D premiums vary by plan, but enrollees may be subject to additional costs if they made more than $97,000. Additional monthly fees range between $12.20 and $76.40. Like Part D, Medicare Advantage premiums vary by plan. The private insurance companies set premium, deductible, copayment, and coinsurance amounts.

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By Admin

Updated on 05/11/2022