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 2022, all other enrollees must pay $499.

Understanding the Cost of Medicare
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The 2022 deductible for Medicare Part A is $1,556 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 $389 coinsurance per day and $778 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
  • $389 coinsurance for days 61 to 90 ($11,670)
  • $778 coinsurance for days 91 to 120 ($23,340)
  • Total = $35,010

Coinsurance amounts are slightly different for stays at skilled nursing facilities. After $0 coinsurance for the first 20 days, patients will need to pay $194.50 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 2022, for instance, the SSA considers the yearly income for 2020. 

For 2022, the Medicare Part B monthly premiums are as follows:

  • $170.10 for individual filers earning less than $91,000
  • $238.10 for individual filers earning between $91,000 and $114,000
  • $340.20 for individual filers earning between $114,000 and $142,000
  • $442.30 for individual filers earning between $142,000 and $170,000
  • $544.30 for individual filers earning between $170,000 and $500,000
  • $578.80 for individual filers earning more than $500,000 

Medicare Part B has a $233 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 $91,000. Additional fees range between $12.40 and $77.90. Like Part D, Medicare Advantage premiums vary by plan. The private insurance companies set premium, deductible, copayment, and coinsurance amounts.

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Updated on 05/11/2022