Educational information only. Costs shown are the 2025 standard amounts. Your actual costs may differ based on income (IRMAA), plan choice, and individual circumstances. Always verify current figures at Medicare.gov.
Part A Hospital Coverage Costs (2025)
| Cost Item | 2025 Amount |
|---|---|
| Monthly premium — 40+ work quarters (most people) | $0 |
| Monthly premium — 30–39 quarters | $278 |
| Monthly premium — fewer than 30 quarters | $505 |
| Inpatient hospital deductible (per benefit period) | $1,676 |
| Hospital days 1–60 coinsurance | $0 (after deductible) |
| Hospital days 61–90 coinsurance | $419/day |
| Lifetime reserve days (days 91–150) coinsurance | $838/day |
| Beyond lifetime reserve days | 100% your cost |
| Skilled nursing facility (SNF) days 1–20 | $0 |
| SNF days 21–100 coinsurance | $209.50/day |
| SNF beyond 100 days | 100% your cost |
The benefit period deductible is per benefit period, not per year. A new benefit period — and new deductible — begins after you've been out of the hospital for 60 consecutive days. Full Part A guide →
Part B Medical Coverage Costs (2025)
| Cost Item | 2025 Amount |
|---|---|
| Standard monthly premium | $185.00 |
| Annual deductible | $257 |
| Coinsurance after deductible | 20% of Medicare-approved amount |
| Annual out-of-pocket maximum | None (unlimited in Original Medicare) |
| Late enrollment penalty | 10% per 12-month period delayed (permanent) |
IRMAA — Higher Premiums for Higher Earners
If your income exceeds certain thresholds, you pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of the standard premium. IRMAA is based on your income from 2 years prior (2025 premiums are based on 2023 income).
| 2023 Individual Income | 2023 Joint Income | 2025 Monthly Part B Premium |
|---|---|---|
| ≤ $106,000 | ≤ $212,000 | $185.00 |
| $106,001 – $133,000 | $212,001 – $266,000 | $259.00 |
| $133,001 – $167,000 | $266,001 – $334,000 | $370.00 |
| $167,001 – $200,000 | $334,001 – $400,000 | $480.90 |
| $200,001 – $500,000 | $400,001 – $750,000 | $591.90 |
| Above $500,000 | Above $750,000 | $628.90 |
If your income has dropped since 2023 (retirement, loss of income), you can appeal IRMAA using SSA Form SSA-44. Full Part B guide →
Part D Prescription Drug Costs (2025)
| Cost Item | 2025 Amount |
|---|---|
| Monthly premium (national average) | ~$40 (varies by plan) |
| Annual deductible (maximum) | $590 (many plans waive for lower tiers) |
| Out-of-pocket cap (NEW in 2025) | $2,000 — after this, you pay $0 for rest of year |
| Late enrollment penalty | 1% per month without creditable coverage (permanent) |
Major 2025 improvement: The $2,000 out-of-pocket cap on Part D drug costs is new under the Inflation Reduction Act. The old "donut hole" (coverage gap) has been eliminated. Full Part D guide →
Medicare Advantage Costs (2025)
| Cost Item | 2025 Amount |
|---|---|
| Part B premium (still owed) | $185.00/month (standard) |
| Additional plan premium | Often $0 (varies by plan) |
| In-network out-of-pocket maximum | $9,350 maximum by law (many plans set lower limits) |
| Copays/coinsurance | Varies by plan (e.g., $5–$40 PCP, $40–$80 specialist) |
Total Cost Comparison: Three Common Scenarios
| Scenario | Est. Monthly Premium | Out-of-Pocket Risk | Best For |
|---|---|---|---|
| Original Medicare alone (A + B, no drug or supplement) | $185/mo | Unlimited — no cap on 20% coinsurance | Not recommended for most people |
| Original Medicare + Medigap G + Part D | ~$375–$425/mo | Very low — Medigap covers most gaps. Only the $257 Part B deductible per year | Those wanting maximum protection and provider freedom |
| Medicare Advantage (MAPD, $0 premium plan) | $185/mo (just Part B) | Capped at plan's OOP max (often $3,000–$9,350) | Those wanting lower monthly cost and are comfortable with a provider network |
Ways to Reduce Your Medicare Costs
- Medicare Savings Programs (MSP): If your income and assets are limited, state programs can help pay Part A and B premiums, deductibles, and coinsurance. Four MSP levels: Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB), Qualifying Individual (QI), and Qualified Disabled Working Individual (QDWI). Apply through your state Medicaid office.
- Extra Help / LIS for Part D: Federal program that reduces Part D premiums and drug copays for low-income beneficiaries. Apply at SSA.gov.
- Add Medigap: A supplement plan converts unpredictable coinsurance costs into a predictable monthly premium. For heavy healthcare users, this usually saves money.
- Appeal IRMAA: If your income dropped significantly since the reference year, file SSA Form SSA-44 to reduce your Part B and D premiums.
- Generic drugs: Ask your doctor if a generic version of your medication is appropriate. Generics are Tier 1–2 in most Part D plans — far cheaper than brand-name equivalents.
- Use preferred pharmacies: Part D plans often have preferred pharmacies where your copays are lower. Some plans have $0 copays at preferred pharmacies for generics.
- Review plans annually: Use the OEP (Oct 15–Dec 7) every year to check if you're still in the most cost-effective plan given your current medications and health needs.