How Much Will Medicare Cost Me Per Month?
Last updated: October 3, 2018
Do you know how much Medicare will cost you each month?
Planning for retirement is really important, and if you’re going to be living off of a fixed income, you need to be aware of your expected insurance costs.
So, how much will Medicare cost you?
Use the interactive Medicare Cost Worksheet to estimate your monthly premiums
Medicare Part A Cost
Medicare Part A helps cover bills from the hospital. So, if you are admitted and receive inpatient care, Medicare Part A is going to help with those costs.
If you’ve worked at least 10 years or can draw off a spouse who has, Medicare Part A is free to have. That means you don’t have any monthly costs to have Medicare Part A.
This doesn’t mean that Medicare Part A doesn’t have other costs like a deductible and coinsurance – because it does – but you won’t have to pay those costs unless you actually need care.
Simply having Medicare Part A is free.
The Medicare Part A deductible, as well as the coinsurance for care, fluctuates slightly every year, but here are the current costs:
- $1,340 deductible
- Days 1-60: $0 coinsurance
- Days 61-90: $329 coinsurance
- Days 91+: $658 coinsurance per “lifetime reserve day,” which caps at 60 days
- Beyond lifetime reserve days: You pay all costs
Medicare Part B Cost
Medicare Part B helps cover your medical bills. Lab tests, doctor visits, and wheelchairs are examples of some services and items that Medicare Part B would help pay for.
Medicare Part B does have a monthly premium, which is $134 per month. This monthly premium tends to go up a little bit each year.
This means it’s important to make sure you really need Medicare Part B, because if you don’t, you’re paying for insurance you aren’t using.
We always recommend individuals who are working past the age of 65 to contact us to make sure their current insurance set-up is appropriate.
[RELATED: Working Past 65?]
Medicare Part B does have a deductible, but it’s much cheaper than you’re probably used to seeing – it’s only $183 per year. After you meet that deductible, you typically pay 20% of the Medicare-approved amount for any services, tests, or items you need.
Medicare Part D Cost | Prescription Drug Plan Cost
For a Medicare Part D plan, also called a Prescription Drug Plan (PDP), the monthly cost varies depending on the prescriptions you take.
According to the Centers for Medicare & Medicaid Services, the average monthly premium for a Medicare Part D plan is around $34 per month in 2018.
If you do take medications, you’ll have other costs, like a deductible, copays, and coinsurance.
Here’s an example of what a typical drug plan would look like:
- $25.80 monthly premium
- $345 drug deductible
- $1-$30 drug copay
- 26%-35% drug coinsurance
We recommend you follow our Medicare Part D Cheat Sheet to determine your actual drug plan costs. You can do this directly on Medicare.gov.
Medigap Cost | Medicare Supplement Cost
Since Medicare only covers about 80% of your medical bills, many people add on a Medicare Supplement to pick up the remaining costs.
The monthly premium for a Medicare Supplement will depend on which plan you choose, your age, your gender, your zip code, and your tobacco usage.
Just to give you an idea of what these costs look like, here are a few sample rates, which are subject to change:
A Medigap Plan F for a 65-year-old female who doesn’t use tobacco and lives in Kansas City, Kansas comes out to about $180 per month.
For the same female, a Medigap Plan G comes out to about $140 per month.
Please contact an agent for accurate rates for you and your zip code.
Medicare Part C Cost | Medicare Advantage Cost
If you choose to get Medicare Part C, which is also called Medicare Advantage (MA), you are replacing Medicare Parts A and B. Often times, MA plans also include a drug benefit, so you also replace Part D.
However, you still must pay the $134 monthly premium for Medicare Part B.
MA premiums vary, depending on which type of plan you choose, which area you’re in, and other similar factors. In general, MA premiums are quite low, and sometimes, they’re even $0.
While the monthly premium is very low or even $0, there are some things to consider before opting an MA plan. You can read about the pros and cons of Medicare Advantage here.
Here’s what a typical cost break-down for an MA plan would look like:
- $0 monthly premium for the MA plan
- $134 monthly premium for Medicare Part B
- $150 annual drug deductible
- $4,650 in-network out of pocket maximum
- $11 copay for regular office visits
- $45 copay for a specialist
- 20% coinsurance for an in-network outpatient surgery
This varies widely, but expect to see a low monthly premium and a high out of pocket maximum with MA plans.
Total Monthly Medicare Costs
When we total up all of your total monthly Medicare costs, here’s what you can expect.
If you decide to use Original Medicare with a Medicare Supplement and a drug plan, your monthly costs would be:
- $134 for Medicare Part B
- Get a quote for your Medicare Supplement (prices vary widely)
- An average of $34 for your drug plan (this can vary)
If you decide to use a Medicare Advantage plan that includes a drug plan, your monthly costs would be:
- $134 for Medicare Part B
- A very low (or $0) monthly premium for the MA plan
For extra help, use the interactive Medicare Cost Worksheet to determine how much you will pay each month for Medicare.
Use the interactive Medicare Cost Worksheet to estimate your monthly premiums
Medicare is confusing. The more you seek out information, the more overwhelmed you feel. You're definitely not alone.
We work with your best interest in mind, so while the decision will always be up to you, you’ll be empowered with knowledge that you can really understand and get behind.
At Medicare Allies, you aren’t just another transaction or a number in a system. You are an individual, and we will continue to develop a relationship with you and be there for you when you need us in the future.
So don't be shy – let us serve you.