The expected cost for Medicare is a common concern for many who are preparing to make the transition over to Medicare. Please read below to learn more about your expected costs.
You typically do not pay a monthly premium for Part A coverage if you or your spouse paid Medicare taxes while working for a certain amount of time. This is sometimes called premium-free Part A. If you aren’t eligible for premium free Part A, you may be able to buy Part A. (Please keep in mind most people do NOT pay a premium for their Medicare Part A)
If you have to buy Part A, you will pay up to $505/month for it in 2024. People with less than 40 quarters work experience but more than 30 quarters can get a pro-rated premium of $278 per month.
The standard cost for Part B for 2024 is $174.70. Most people will pay $174.70 a month for their Medicare Part B, however, if your income for 2024 was more than $103,000 (single) or above $206,000 (joint) then you will pay a higher amount. Social Security will deduct your Part B premium from your Social Security check monthly. If you have not enrolled in Social Security income benefits yet, they’ll bill you quarterly. Review chart below to determine your Medicare Part B cost.
| If your yearly income in 2022 (for what you pay in 2024) was | You pay each month (in 2024) | ||
|---|---|---|---|
| File individual tax return | File joint tax return | File married & separate tax return | |
| $103,000 or less | $206,000 or less | $103,000 or less | $174.70 |
| above $103,000 up to $129,000 | above $206,000 up to $258,000 | Not applicable | $244.60 |
| above $129,000 up to $161,000 | above $258,000 up to $322,000 | Not applicable | $349.40 |
| above $161,000 up to $193,000 | above $322,000 up to $386,000 | Not applicable | $454.20 |
| above $193,000 and less than $500,000 | above $386,000 and less than $750,000 | above $103,000 and less than $397,000 | $559.00 |
| $500,000 or above | $750,000 or above | $397,000 or above | $594.00 |
The average nationwide monthly premium for a drug plan in 2024 is $34.70. Although plan premium varies depending on the plan you choose. Prescription plans are offered by private insurance carriers and some plans may be less than $34.70 and some plans may cost more. Many Medicare Advantage Plans include prescription coverage!
You will pay the plans monthly premium, however, if you are in higher income bracket, you will pay the plans monthly premium as well as the income-related monthly adjustment amount. Please see the Medicare Part D premiums chart below to see if you will be subject to IRMAA.
To determine your Medicare cost for Part D drug plans, review the table below. It shows the amount that you will pay for Part D in 2024.
| If your filing status and yearly income in 2022 was | |||
| File individual tax return | File joint tax return | File married & separate tax return | You pay each month (in 2024) |
|---|---|---|---|
| $103,000 or less | $206,000 or less | $103,000 or less | your plan premium |
| above $103,000 up to $129,000 | above $206,000 up to $258,000 | not applicable | $12.90 + your plan premium |
| above $129,000 up to $161,000 | above $258,000 up to $322,000 | not applicable | $33.30 + your plan premium |
| above $161,000 up to $193,000 | above $322,000 up to $386,000 | not applicable | $53.80 + your plan premium |
| above $193,000 and less than $500,000 | above $386,000 and less than $750,000 | above $103,000 and less than $397,000 | $74.20 + your plan premium |
| $500,000 or above | $750,000 or above | $397,000 or above | $81.00 + your plan premium |