Medicare premiums: Each part has a unique price
How much are Medicare premiums?
Each part or Medicare (A, B, C, and D) provides a different set of health insurance benefits.1
Medicare premiums are different for each part, too. But how different are they?
We explain what each part of Medicare might cost you.
Medicare Part A premiums (for hospital insurance)
The first part of Original Medicare, Part A, covers:
For most, Medicare Part A comes at no additional cost. This is because most adults have already paid for Medicare Part A. Here’s what you need to know:
- You won’t pay Medicare premiums if you or your spouse have worked 40 quarters (10 years) or more in the United States. Why? You’ve already paid Part A Medicare premiums through Social Security taxes.
- You will pay Medicare premiums for Part A if you haven’t worked for at least 40 quarters in the U.S. In 2023, you’ll pay either $278 or $506 each month for Part A, depending on how long you or your spouse worked and paid Medicare taxes.2
Medicare Part B premiums (for medical insurance)
The second half of Original Medicare, Part B, covers:
- Doctor visits
- Preventive services
- Diagnostic testing
- Durable medical equipment (DME)
Many beneficiaries choose to enroll in Part B. For most seniors, Part B costs $164.90 per month in 2023.2
However, the Part B Medicare premium can increase based on your annual income. The possible increase is called the Income Related Monthly Adjustment Amount (IRMAA) and is calculated based on your income two years prior to the adjustment year.3
For a closer look, see the chart below: 4
|2023 Part B Medicare premiums|
|File individual tax return||File joint tax return||File married and separate tax return||Part B: you pay (in 2023)|
|$97,000 or less||$194,000 or less||$97,000 or less||Standard premium = $164.90|
|Above $97,000 up to $123,000||Above $194,000 up to $228,000||Not applicable||$65.90 + standard premium = $230.80|
|Above $123,000 up to $153,000||Above $246,000 up to $306,000||Not applicable||$164.80 + standard premium = $329.70|
|Above $153,000 up to $183,000||Above $306,000 up to $366,000||Not applicable||$263.70 + standard premium = $428.60|
|Above $183,000 up to $499,999||Above $366,000 and less than $750,000||Above $97,000 and less than $403,000||$362.60 + standard premium = $527.50|
|Above or equal to $500,000||Above or equal to $750,000||Above or equal to $403,000||$395.60 + standard premium = $560.50|
Medicare Part C premiums
Medicare Part C, or Medicare Advantage, is an alternative to Original Medicare.
You do not lose your Part A and Part B coverage, but you are still responsible for your Part B premiums.
With Medicare Part C, you have comprehensive coverage that often covers additional benefits such as:
- Dental services
Medicare Part D premiums (for prescription drug insurance)
Medicare income limits also apply to Part D, meaning that IRMAA may also increase your Part D Medicare premiums.
How much will you pay for prescription drug coverage (Medicare Part D)?
Look at the chart below for more information on what your monthly Part D adjusted amount will be in 2023.
The chart is based on your filing status and yearly income for 2020.4
|2023 Part D Medicare premiums|
|File individual tax return||File joint tax return||File married and separate tax return||Part D: you pay (in 2023)|
|$97,000 or less||$194,000 or less||$97,000 or less||Your plan premium|
|Above $97,000 up to $123,000||Above $194,000 up to $228,000||Not applicable||$12.20 + your plan premium|
|Above $123,000 up to $153,000||Above $246,000 up to $306,000||Not applicable||$31.50 + your plan premium|
|Above $153,000 up to $183,000||Above $306,000 up to $366,000||Not applicable||$50.70 +your plan premium|
|Above $183,000 up to $499,999||Above $366,000 and less than $750,000||Above $97,000 and less than $403,000||$70.00 + your plan premium|
|Above or equal to $500,000||Above or equal to $750,000||Above or equal to $403,000||$76.40 + your plan premium|
Help with Medicare premiums
While these programs may not cover all your medical expenses, they can certainly help:
- Extra Help">Extra Help or Low-Income Subsidy (LIS">LIS). This subsidy helps cover Medicare Part D (prescription drug coverage) costs.5 It can be applied to: deductibles, copayments, and premiums. HealthMarkets can help you determine whether you qualify for Extra Help">Extra Help.
- Qualified Medicare Beneficiary (QMB) Program. This program can help cover Part A and B premiums and out-of-pocket costs (deductibles, coinsurance, and copayments).
- Specified Low-income Medicare Beneficiary (SLMB) Program. This program can help cover Part B premiums.
- Qualified Individuals (QI) Program. This program can help cover Part B premiums.
- Qualified Disabled and Working Individuals (QDWI) Program. This program can help working disabled people who are younger than 65 and those who have lost their Medicare Part A premium-free coverage by going back to work. It helps cover Part A premiums.
Compare plans to choose the right Medicare coverage
Saving money may seem tempting on a fixed budget. However, selecting the lowest Medicare premiums may end up costing you more when it comes to deductibles, out-of-pocket costs, and uncovered medical services.
Start comparing your Medicare options or call (800) 827-9990 to talk with a licensed insurance agent today.