No. Even though Medicare can cover many of your health care costs, you’ll still have some out-of-pocket expenses, including premiums, deductibles, copayments and coinsurance.

How much you’ll pay for Part A #

Premium. Most people don’t pay premiums for Medicare Part A, which covers inpatient stays in hospitals and skilled nursing facilities, some home health services and end-of-life hospice care. You don’t have to pay Part A premiums if you or your spouse had Medicare taxes deducted from your paychecks for at least 40 quarters of work, the equivalent of 10 years or more. The quarters don’t have to be consecutive.

If you don’t qualify for premium-free Part A, you can choose not to buy it. But if you do have to pay, you’ll also need to pay for Part B. Part A premiums are:

• $278 a month in 2023 and 2024 if you or your spouse paid 30 to 39 quarters of Medicare taxes.
• $506 a month in 2023 if you or your spouse paid fewer than 30 quarters of Medicare taxes, dropping to $505 in 2024.

Deductible. You must pay a $1,676 Part A deductible for each benefit period you’re hospitalized in 2025. A benefit period begins when you’re admitted to a hospital or skilled nursing facility as an inpatient and ends when you’ve been out of the hospital or facility for 60 days in a row.

Coinsurance. You may have to pay a portion of the costs, called coinsurance, if you stay in a hospital or skilled nursing facility for a long time. Medicare covers your first 60 days as a hospital inpatient, but in 2025, you pay $419 a day for days 61 to 90 and $838 a day for up to 60 lifetime reserve days.

Each lifetime reserve day can be used only once but can apply to different benefit periods. You pay all costs beyond 90 days per benefit period if you use up your lifetime reserve days.

If you have a qualifying stay in a skilled nursing facility, Medicare can cover the first 20 days. But you’ll have to pay coinsurance for days 21 to 100, at $200 a day in 2023; $204 in 2024 and all costs beyond day 100.

If you’re receiving end-of-life care through a hospice program, you may have to pay up to $5 per prescription for pain and symptom management and 5 percent of the Medicare-approved amount for respite care.

How much you’ll pay for Part B #

Most people pay $185.00 a month in 2025 for Medicare Part B premiums. People who are single with an adjusted gross income of more than $106,000, or married filing jointly with income greater than $212,000, pay a high-income surcharge with premiums ranging from $259.00 to $628.90 a month in 2025, depending on income level.

If you don’t enroll in Medicare when you are first eligible or qualify for a special enrollment period to sign up later, you may have to pay a late enrollment penalty, which is added to your Part B premiums for as long as you have the coverage.

Deductible. You’ll have to pay $240 in 2024 before most Part B coverage begins; that number increases to $257 in 2025.

Coinsurance. After paying the deductible, you generally pay 20 percent of the Medicare-approved amount, called coinsurance, for most doctor and outpatient services and for durable medical equipment. Part B covers some preventive services without a deductible or coinsurance. There is no limit or cap to how much you can be charged for Part B coinsurance.

What is the cost for a Part D prescription drug plan? #

Premiums. Medicare doesn’t automatically cover prescription drugs, but you can buy a Part D plan from a private insurer. These plans charge a monthly premium that varies by plan, averaging $46.50 in 2024.

People with higher incomes pay a surcharge that adds $13.70 to $85.80 to their monthly bills in 2025. If you don’t sign up for a Part D plan when you’re first eligible and don’t have other similar drug coverage, you may have to pay a late enrollment penalty.

Deductible, copayments, coinsurance. Part D plans can have a deductible of up to $590 in 2025. You’ll also have copayments or coinsurance for your drugs, based on the plan, the medication and how much you’ve spent so far on prescriptions during the year.

In 2025, you will pay up to $2,000 for all drug purchases. This amount does not include your monthly premiums.

Keep in mind… #

You can mitigate a lot of the out of pocket expenses through either a Medicare Part C (Medicare Advantage plan) or a Medicare Suppliment (Medigap plan).