Key Takeaways
- Medicare premiums are the monthly fees you pay for coverage once you enroll in Medicare.
- Most people don’t pay premiums for Medicare Part A hospital insurance, while Medicare Part B medical insurance premiums cost $174.70 in 2024 — or more if you have a higher income.
- Medicare Advantage plan premiums vary widely and are based on your plan, though some charge $0 in monthly premiums.
- Medicare Part D prescription drug premiums can also vary widely depending on your plan.
2024 Premiums for Original Medicare
The 2024 premiums were announced on October 12, 2023. The Part B premium increased by $9.80 to $174.70. While most don’t pay a Part A premium, the potential cost stayed relatively the same for 2024, decreasing by one dollar.
Original Medicare includes Medicare Part A hospital insurance and Part B medical insurance. The U.S. Centers for Medicare & Medicaid Services adjust the premiums for the following year in the fall.
Did You Know?
Medicare Easy Pay is a free electronic payment option that can help you pay your Original Medicare premium quickly and conveniently.
Medicare Part A Premium in 2024
The Part A premium will cost $0 for most people in 2024. Part A is usually free if you or your spouse have been contributing to the Part A Trust Fund for about 40 quarters, or 10 years of work. The Part A Trust Fund is the FICA deduction from your paycheck.
You don’t have to pay a Part A premium if you:
- Qualify or already have retirement or disability benefits from Social Security or the Railroad Retirement Board
- Get Medicare earlier than age 65
- If you or your former or current spouse paid Medicare taxes while working 10+ years
However, if you didn’t work long enough, you might have to pay a full or reduced Part A premium.
2024 Potential Part A Premium Costs
| Individuals with less than 30 quarters of coverage, or individuals with disabilities who have exhausted other entitlements | Full Part A Premium of $505 |
| Individuals with at least 30 quarters of coverage (or your current or ex-spouse as 30 quarters of coverage) | Reduced Part A Premium of $278 |
If you have concerns paying for the Part A premium, you could look into the Qualified Medicare Beneficiary program (QMB), one of the Medicare Savings Programs. If you qualify, QMB will cover the Part A premium, along with other potential benefits.
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Medicare Part B Premium in 2024
The Medicare Part B standard premium increased in 2024 to $174.70 from $164.90.
People with higher incomes may have to pay a higher Part B premium. Your modified adjusted gross income, marital status and how you file your taxes all influence your Part B premium cost.
For example, if you’re filing an individual tax return and your salary is $110,000 — your Part B premium would be $244.60.
If you’re married, filing a joint tax return and your salaries are over $260,000 — your Part B premium would be $349.40.
2024 Medicare Part B Premiums
| Filed an Individual Tax Return | Filed a Joint Tax Return | Medicare Part B Premium |
|---|---|---|
| $103,000 or less | $206,000 or less | $174.70 |
| More than $103,000 up to $129,000 | More than $206,000 up to $258,000 | $244.60 |
| More than $129,000 up to $161,000 | More than $206,000 up to $322,000 | $349.40 |
| More than $161,000 up to $193,000 | More than $322,000 up to $386,000 | $454.20 |
| More than $193,000 but less than $500,000 | More than $386,000 but less than $750,000 | $559.00 |
| $500,000 or above | $750,000 or above | $594.00 |
If you had a major life changing event in the two years since your last tax return, such as a change in your marital status, losing a job or loss of pension or income-producing property, you can request the Social Security Administration to adjust your premium.
Medicare Advantage Premiums in 2024
The projected average Medicare Advantage premium is $18.50 for 2024, according to CMS. Your premium price will fluctuate depending on the plan you choose and where you live. For the most part, plans with cheaper premiums may offer far fewer benefits than those with more expensive premiums.
Be sure to compare plans to get the coverage you want or need at a price you can afford.
Medicare Advantage Plans in Your State
You can check out average prices and the number of plans available in your state with state-by-state fact sheets at the U.S. Centers for Medicare & Medicaid Services website.
CMS predicts that Medicare Advantage enrollment will reach 33.8 million in 2023. In addition to Medicare Advantage enrollment, plan choices and benefits are projected to increase.
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Medicare Part D Premiums in 2024
The 2024 Part D premium varies by plan and coverage. In 2024, the national base beneficiary premium — which is the average Part D premium cost — is $34.70.
Remember, Part D prescription drug coverage is optional with Original Medicare. If you don’t opt into a plan, you aren’t responsible for paying the premium.
Most people only pay the monthly premium, which is set by their provider, for Medicare Part D coverage. But people with higher incomes also have to pay an additional fee based on their income reported to the Internal Revenue Service. For 2024, that would most likely be based on their 2023 income.
2023 Medicare Part D Premiums (Based on 2022 Tax Return)
| Filed an Individual Tax Return | Filed a Joint Tax Return | Married Filing Separately Tax Return | Your Monthly Premium in 2023 |
|---|---|---|---|
| $103,000 or less | $206,000 or less | $103,000 or less | Your plan premium |
| More than $103,000 up to $129,000 | Above $206,000 up to $258,000 | N/A | $12.90 + your plan premium |
| More than $129,000 up to $161,000 | Above $258,000 up to $322,000 | N/A | $33.30 + your plan premium |
| More than $161,000 up to $193,000 | Above $322,000 up to $386,000 | N/A | $53.80 + your plan premium |
| More than $193,000 but less than $500,000 | Above $386,000 but less than $750,000 | More than $103,000 but 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 |
The extra amount you pay is not part of your plan premium and you do not pay it to your Medicare Part D insurer.
In most cases, the extra amount will be held out of your Social Security check. If it isn’t withheld, you’ll get a bill from either the Social Security Administration or the Railroad Retirement Board.
You also have to pay the extra fee if you are in a Medicare Advantage plan that includes prescription drug coverage.
If you don’t pay the extra fee, you can lose your Medicare Part D coverage.
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Medigap Premiums in 2024
Your Medigap premiums in 2024 vary. They depend on the plan you choose, where you live and when you purchase a policy. If you have Original Medicare, you can purchase a Medigap policy to help cover some of the Part A and B premiums. You cannot get a Medigap Policy if you have Medicare Advantage.
To get the best premium price, consider buying a Medigap policy within the six-month window that starts the first month you have Medicare Plan B. During this period, all Medigap polices are priced the same, even if you’re in poor health. After the six-month window closes, companies can raise Medigap premiums if you have health problems.
Where you live also affects your Medigap premiums. The table below shows costs for different Medigap plans for a 50-year-old woman who doesn’t smoke in Florida.
| Medigap Plan Type | Premium Cost |
|---|---|
| Plan A | $358 - $972 |
| Plan B | $470 - $835 |
| Plan C | $663 - $968 |
| Plan D | $651 - $823 |
| Plan F | $549 - $1,449 |
| Plan F (High Deductible) | $201 - $546 |
| Plan G | $533 - $1,059 |
| Plan G (High Deductible) | $171 - $678 |
| Plan K | $254 - $366 |
| Plan L | $426 - $580 |
| Plan M | $639 - $639 |
| Plan N | $433 - $794 |
Frequently Asked Questions About Medicare Premiums
Are Medicare premiums based on income? At what income level do premiums increase?
Medicare Part B premiums and Medicare Part D prescription drug premiums are based, in part, on your annual income and tax filing status. The cost of these premiums is adjusted each year according to the Medicare Income-Related Monthly Adjustment Amount (IRMAA).
Can Medicare unenroll you for not paying premiums?
A Medicare plan can not disenroll a beneficiary for failing to pay monthly premiums if those premiums are automatically deducted from their Social Security payments. But it can disenroll you if it finds out the deduction from Social Security has stopped or if the request for the premium deduction was initially rejected. In the latter case, the plan can bill the member for their premiums until the Social Security deduction starts.
How can you reduce your Medicare premiums?
Everyone has to pay Medicare Part B premiums in Original Medicare, but some Medicare Advantage plans offer premium reductions. The plans, offered by private insurers, pay some or all of the Part B premium, leaving you with reduced or even $0 monthly Medicare premiums.
