How Much Does Medicare Cost? Premiums and Out-of-Pocket Expenses in 2025
Key takeaways:
Medicare is comprehensive health insurance that covers hospitalizations, doctor’s visits, preventive services, lab tests, and more. But you’re still responsible for some of the costs. In 2025, the standard Medicare Part B premium is $185 per month, which you pay with original Medicare or Medicare Advantage (MA).
Your MA plan may have an additional monthly premium on top of what you pay for Part B. You also may have to pay a deductible when you access care. Some MA plans have a separate deductible for prescription medication coverage. If you have original Medicare, you need to buy a Part D plan for prescription coverage. If your MA plan doesn’t include prescription coverage, you’ll need a stand-alone Part D plan.
Many original Medicare enrollees buy Medigap insurance to cover out-of-pocket costs, such as deductibles, copays, and coinsurance.
Table of contents
Medicare covers a wide range of healthcare needs, from annual checkups to ER visits. But that doesn’t mean the care is free. If you have a Medicare or Medicare Advantage (MA) plan — for people age 65 and older, and younger people with a qualifying disability — expect to be responsible for some share of the bills.
It’s important to understand what out-of-pocket costs you’re likely to encounter. This can help ensure you’re able to afford the care you need.
How much does Medicare cost?
Your Medicare costs depend on what type of coverage you choose and how much care you access. The federal government adjusts Medicare premiums and deductibles each year.
Save every month on GLP-1 meds with GoodRx
Save an average of $235 on FDA-approved GLP-1s like Ozempic and Zepbound.
Medicare 2025 premiums, deductibles, and out-of-pocket costs snapshot
Medicare cost | 2024 cost | 2025 cost |
|---|---|---|
Part A premium | $0 for most people, but others pay $278 or $505 per month, depending on how many quarters of Medicare taxes they paid | $0 for most people, but others pay $285 or $518 per month, depending on how many quarters of Medicare taxes they paid |
Part A hospital deductible | $1,632 per benefit period | $1,676 per benefit period |
Part B premium | $174.70 per month for most people, but those with higher incomes pay as much as $594 per month | $185 per month for most people, but those with higher incomes pay as much as $628.90 per month |
Part B deductible | $240 per year | $257 per year |
Part C (Medicare Advantage) costs vary | ||
Part D coverage gap begins | $5,030 spent | The coverage gap is eliminated in 2025, and the out-of-pocket maximum is $2,000 |
Part D catastrophic coverage begins | $8,000 spent | $2,000 spent; you now have the option to pay your out-of-pocket costs throughout the year by enrolling in the new Medicare Prescription Payment Plan |
How much does a Medicare beneficiary spend out of pocket?
On average, households with people covered by Medicare spent about $7,000 on healthcare in 2022 — more than $580 a month — according to an analysis by KFF. An AARP analysis of a 2019 spending survey found that on average, traditional Medicare enrollees shelled out $6,663 per year on insurance premiums and medical services.
What you spend out of pocket will depend on your situation. With original Medicare, there’s no cap on your out-of-pocket expenses (unless you have an insurance supplement, such as Medigap). But MA plans must have out-of-pocket limits. In 2025, the out-of-pocket maximum for MA plans can’t exceed:
$9,350 for in-network covered services
$14,000 for in-network and out-of-network covered services combined
If you need help selecting coverage, the State Health Insurance Assistance Program offers free counselors who help people sort through their Medicare choices.
How much are Medicare’s premiums?
Your premium is the amount you pay every month to have Medicare coverage. The federal government sets Medicare premiums for Part A and Part B and adjusts them annually. MA plans — known as Part C — replace Parts A and B. Most MA plans include Part D prescription coverage. You need to buy a stand-alone Part D plan if you have original Medicare, and you need to pay for a stand-alone Part D plan if your MA plan doesn’t include prescription coverage. Stand-alone Part D premiums can change year to year.
MA plan premiums include what you pay for Part A (if anything) and your Part B monthly payment (which is typically deducted from Social Security benefits). Note that “premium free” or “zero premium” MA plans are a little misleading because your Part B premium, at minimum, is included. If you have an additional premium for your MA plan, the amount can change annually.
Medicare plan changes: You can change your coverage during Medicare open enrollment from October 15 to December 7. Medicare Advantage open enrollment is the first 3 months of the year.
Donut hole eliminated: The new Medicare Part D $2,000 out-of-pocket limit begins in 2025, and the coverage gap known as the donut hole ends on December 31, 2024.
Medicare prescription payment plans: Starting January 1, 2025, anyone with Medicare Part D will have the option to make payments for out-of-pocket medication costs instead of paying up front at the pharmacy.
Medicare premiums in 2025
Medicare coverage | 2025 premium |
|---|---|
Part A (hospital insurance) | Most people pay $0 per month; others pay $285 or $518 per month, depending on how many quarters of Medicare taxes they paid. |
Part B (medical insurance) | Most people pay the standard $185 per month. Those with higher incomes pay as much as $628.90 per month. |
Part C (Medicare Advantage) | It varies by plan. Some charge $0 per month aside from the Part B premium. The average MA premium is projected to be $17 per month, according to the Centers for Medicare & Medicaid Services. About 60% of MA enrollees will have no additional premium if they stay in their 2024 plan. |
Part D (optional drug coverage if you don’t have creditable coverage from another source) | It varies by plan. The average monthly premium for Part D is projected to be about $46.50. |
How much are Medicare’s deductibles?
A deductible is a fixed dollar amount that’s your responsibility before your health plan will pay its share of costs for covered services.
Original Medicare’s Part A and Part B deductibles are paid in different ways. The Part A deductible for hospital inpatient care is per benefit period. That period begins when you’re admitted to the hospital. It ends if you haven’t received inpatient care (or skilled nursing care) for 60 days in a row. The Part B deductible is per year.
Medicare deductibles in 2025
Medicare coverage | 2025 deductible |
|---|---|
Part A (hospital insurance) | $1,676 per benefit period |
Part B (medical insurance) | $257 per year |
Part C (Medicare Advantage) | Varies by plan |
Part D | Varies by plan — some don’t have a deductible, others do (it can’t exceed $590). |
How much are Medicare’s coinsurance and copays?
You may be charged for services under Part A after meeting your deductible depending on how much hospital care you need.
Read more like this
Explore these related articles, suggested for readers like you.
After meeting your Part B deductible, you’re typically responsible for 20% of costs.
If you have Part C (MA) or Part D (prescription coverage), you may be responsible for a copay (a set dollar amount) or coinsurance (a percentage) when accessing services or medication. The precise amount will differ based on the plan.
How much does Medicare Part A cost?
Medicare Part A covers inpatient care in hospitals and skilled nursing facilities. It also covers hospice care and some home health care. Part A costs in 2025 are as follows:
Premium: Free for most people
Premium if your Part A is not free: $285 or $518 per month
Deductible: $1,676
Inpatient stay at no additional cost: Days 1 to 60 after you pay your deductible
Coinsurance for inpatient stay: $419 daily for days 61 to 90; $838 daily while using your 60 lifetime reserve days (days 91 to 150); you pay all costs after day 150
Coinsurance for a skilled nursing facility stay: $0 for days 1 to 20, then $209.50 daily for days 21 to 100; you pay all costs after day 100
Home healthcare: $0 for covered services and 20% of the Medicare-approved amount for durable medical equipment
Hospice care: $0 for covered services, but you may pay up to $5 for each prescription you need and 5% of the Medicare-approved amount for inpatient respite care
Some of the costs listed above may be covered if you have a Medigap supplement plan.
How much does Medicare Part B cost?
Unlike Part A, most people with Medicare pay a monthly premium for Part B. This is medical insurance that covers outpatient care, such as doctor’s visits, medically necessary ambulance services, preventive services, and durable medical equipment — such as a walker or a wheelchair.
In addition to the premium, you must pay 20% coinsurance for most services covered under Part B. If you’re at the hospital, outpatient services are still subject to 20% coinsurance.
Part B costs in 2025 are covered as follows:
Premium: $185
Premium if you have a higher income: Up to $628.90
Deductible: $257
Coinsurance: 20% of the Medicare-approved amount for most services and equipment
Some of the costs listed above may be covered if you have a Medigap supplement plan.
How much does Medicare Part C (Medicare Advantage) cost?
Medicare Part C is Medicare Advantage. This is a private plan that replaces Part A and Part B coverage. Part C costs in 2025 are as follows:
Premium: Varies, but you must pay your Part B premium to remain in an MA plan.
Out-of-pocket limit: Varies, but the out-of-pocket maximum for MA plans in 2025 can’t exceed $9,350 for in-network covered services or $14,000 for in-network and out-of-network covered services combined.
You cannot combine Medicare Advantage with Medigap, so there is no supplement insurance to help with MA out-of-pocket costs.
How much does Medicare Part D cost?
Medicare Part D covers prescription medication. Part D costs in 2025 are as follows:
Premium: Varies by plan, but the average projected premium is $46.50. Part D may be included in your Medicare Advantage plan. You can also have your premium increased by up to $85.80 per month if you have a high income.
Deductible, copayments, and coinsurance: Vary by plan and pharmacy, but the deductible can’t exceed $590.
Out-of-pocket limit: Beginning on January 1, 2025, you are responsible for no more than $2,000 of your prescription costs in a year. Your plan pays 100% of your costs after you reach that spending cap.
Donut hole sunsets in 2024
Through December 31, 2024, Part D plans have four phases:
Deductible phase: You first pay a deductible (if you have one). This means you pay all prescription costs until you meet your deductible, which is $545 in 2024.
Initial coverage phase: Then you reach the initial coverage phase, which is when you’re responsible for copays and coinsurance.
Coverage gap: The coverage gap, or “donut hole,” begins once you and your plan have spent a combined $5,030 on covered prescriptions in 2024 — including your deductible. In the coverage gap, you’ll pay no more than 25% of your prescription medication costs until you reach $8,000 out of pocket.
Catastrophic phase: Catastrophic coverage starts once you’ve spent $8,000 out of pocket (including the amount paid by other entities, such as Extra Help, on your behalf).
Coverage returns to the deductible phase every year on January 1.
Part D changes in 2025
The Inflation Reduction Act of 2022 changed the plan design for Medicare Part D benefits by eliminating the donut hole (coverage gap) at the end of 2024. In 2025, Part D plans will be responsible for a larger share of medication costs.
When the donut hole sunsets, the Medicare Part D plan design will collapse to three phases:
Deductible phase: During this phase, enrollees pay all of their prescription medication costs until they meet the Part D standard deductible, which is $590 in 2025. (Some plans have a lower deductible or no deductible.)
Initial coverage phase: Enrollees pay copays and coinsurance for covered prescriptions until reaching the out-of-pocket maximum, which is $2,000 in 2025 and will be adjusted annually in the future based on inflation. Only what enrollees pay throughout the year for covered medications will count toward the out-of-pocket limit. Manufacturer discounts on covered medications will no longer be calculated into your out-of-pocket spending.
Catastrophic coverage phase: Enrollees have no cost sharing for covered Part D medications.
For the first time, Part D plans — whether stand-alone or rolled into an MA plan — must offer prescription payment plans for out-of-pocket costs. Instead of paying your entire part up front at the pharmacy when getting a prescription, you can now make monthly payments. The payment plan won’t save you money, but they can help you manage costs.
Medigap: Covering your original Medicare out-of-pocket costs
With original Medicare, there’s no annual out-of-pocket maximum. So if you need a lot of care, your costs can add up. A Medigap plan can help, but less than half of original Medicare enrollees have this supplemental coverage, according to a KFF analysis.
Provided by private insurers, Medigap plans offer varying levels of supplemental coverage for a monthly premium. There are 10 types of Medigap plans, which are designated by letters of the alphabet: A, B, C, D, F, G, K, L, M, and N. The most comprehensive Medigap policies are Plan F and Plan G. Plan F is available only to those who became eligible for Medicare before January 1, 2020. Plan G, the most costly and generous Medigap plan, has no such restriction.
Some plans have out-of-pocket limits, after which your Medigap plan will pay 100% of approved services through the end of the year. For 2025, that limit is $7,220 for Plan K and $3,610 for Plan L.
Visit Medicare.gov to shop Medigap plans in your area. Often, plans with the same letters — which have identical benefits — will have different premiums.
Get Medigap when you’re eligible or pay more
It’s important to note that Medigap has a one-time, 6-month open enrollment period when you are first eligible for Medicare. If you want to buy a Medigap plan after that time — including if you start with an MA plan and switch to original Medicare — you may be subject to medical underwriting. This means you could be denied coverage or have a higher premium.
Does it cost less to have Medicare Advantage?
Maybe. Some Medicare enrollees can cut out-of-pocket costs with a Medicare Advantage plan.
You must receive care from health providers in a plan’s network, which means less choice compared with original Medicare. MA plans also must cap your out-of-pocket expenses.
Research from the Commonwealth Fund suggests having an MA plan won’t always bring cost savings compared with traditional Medicare. The disadvantages of MA plans include:
Narrow provider networks that restrict covered care to your local area
No access to Medigap coverage for out-of-pocket costs
Higher rates of coverage denials
Prior authorization requirements, which can lead to delayed or denied care
Frequently asked questions
For people who have Medicare only because of an end-stage renal disease diagnosis, coverage ends 36 months after a successful kidney transplant. In 2023, Medicare began offering a new benefit with its own premium to help kidney recipients pay for immunosuppressive drugs beyond 36 months if they have no other health insurance. This ensures that these enrollees don’t lose Part B coverage for medications that prevented their bodies from rejecting the new organ. For most people, that monthly premium is $110.40 in 2025, but could be $184 to $552.10 per month if you have a high income. This benefit covers no other medications or services.
A confusing and potentially costly scenario that some hospitalized enrollees encounter is observation status. Even though you’re at the hospital, you may be considered an outpatient for the first day or two (and even longer in extraordinary cases). Medicare enrollees kept in observation status are responsible for paying more while at the hospital. To avoid being blindsided by a surprise bill, check with your physician while at the hospital to see if you’ve been admitted as an inpatient. If not, you may want to advocate for inpatient status if it’s justified.
Your Medicare Part B premium is typically deducted from your Social Security payment. That amount is $185 per month in 2025. But it can be up to $628.90 per month if you have a higher income.
Yes, your premiums for Part B and Part D can be more per month if you have a higher income.
Most people with Medicare pay only a Part B premium, which is $185 a month in 2025 for most enrollees. The majority of people with Medicare are covered by Part A and Part B and don’t pay extra for a prescription plan. About 99% of seniors pay nothing for Medicare Part A because of their work history or a spouse’s credits.
Most enrollees have joined Part B, and its premium is deducted from their monthly Social Security benefit. You pay a Part B premium even if you have an MA plan. About 79% of Medicare enrollees had Part D coverage in 2024, and most of them had that benefit included in their MA plan. Of the Medicare enrollees with Part D, 43% had stand-alone Part D plans that required an additional premium.
The bottom line
Medicare coverage helps enrollees afford healthcare. But it’s not free. You’ll need to pay premiums, deductibles, and other out-of-pocket costs. If you have original Medicare or a Medicare Advantage plan without prescription coverage, you may want to buy a stand-alone Part D plan to cover medications. If you have original Medicare, you may want to buy a Medigap supplement plan to offset your out-of-pocket costs. A free State Health Insurance Assistance Program counselor can help you choose the right coverage to meet your healthcare needs and keep your Medicare costs at their lowest.
Why trust our experts?
References
Centers for Medicare & Medicaid Services. (2024). 2025 Medicare Parts A & B premiums and deductibles.
Centers for Medicare & Medicaid Services. (2024). Final CY 2025 Part D redesign program instructions fact sheet.
Centers for Medicare & Medicaid Services. (2024). Inflation Reduction Act and Medicare.
Centers for Medicare & Medicaid Services. (2024). K & L out-of-pocket limits announcements.
Centers for Medicare & Medicaid Services. (2024). Medicare Advantage and Medicare prescription drug programs to remain stable as CMS implements improvements to the programs in 2025.
Centers for Medicare & Medicaid Services. (2024). Understanding Medicare Advantage plans.
Cubanski, J. (2024). A current snapshot of the Medicare Part D prescription drug benefit. KFF.
Cubanski, J., et al. (2023). Changes to Medicare Part D in 2024 and 2025 under the Inflation Reduction Act and how enrollees will benefit. KFF.
KFF. (n.d.). There are a lot of Medicare Advantage plan options in my area. How do I decide which plan is best for me?
Medicare.gov. (n.d.). Catastrophic coverage. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Compare Medigap plan benefits. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Copayment/coinsurance in drug plans. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Costs. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Costs in the coverage gap. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). End-stage renal disease (ESRD). Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Find a Medigap policy that works for you. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Get ready to buy. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Help with drug costs. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Inpatient or outpatient hospital status affects your costs. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Monthly premium for drug plans. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Skilled nursing facility care. Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). What does Medicare cost? Centers for Medicare & Medicaid Services.
Medicare.gov. (n.d.). Yearly deductible for drug plans. Centers for Medicare & Medicaid Services.
Noel-Miller, C. (2021). Medicare beneficiaries’ out-of-pocket spending for health care. AARP.
Noel-Miller, C. (2023). Beneficiaries in traditional Medicare: Out-of-pocket spending for health care. AARP.
Ochieng, N., et al. (2024). A snapshot of sources of coverage among Medicare beneficiaries. KFF.
Ochieng, N., et al. (2024). Medicare households spend more on health care than other households. KFF.
Ramsay, C., et al. (2024). Medicare Advantage: A policy primer. The Commonwealth Fund.
Sayed, B. A., et al. (2024). Medicare Part D enrollee out-of-pocket spending: Recent trends and projected impacts of the Inflation Reduction Act. U.S. Department of Health and Human Services.
Stewart, J., et al. (2024). What’s the best Medigap plan? Kiplinger.
