How Much Does Medicare Cost?

Understanding the Costs of Medicare

So, you've reached the point where you're considering enrolling in the Medicare health insurance system. Now, let's dive into the most crucial question: how much will it cost you each month?

Part A: Hospital Coverage

For most, Part A (hospital) coverage is premium-free. If you have accrued 40 or more quarters of work credits, you won't pay any additional premium for Part A. This is because you've effectively pre-funded this coverage over the years through your payroll deductions.

If you haven't worked but are married to someone eligible for premium-free Part A, you won't pay a premium either, as you'll qualify based on their record.

Part B: Medical Coverage

Part B covers medical expenses like doctor visits, x-rays, and CT scans. Unlike Part A, it comes with a price tag. In 2025, the base rate for Part B is $185.00 per month for most individuals. However, the actual amount you pay can vary based on your income.

Income-Related Monthly Adjustment Amount (IRMAA)

When you enroll in Medicare, you'll receive a letter stating your monthly premium. Keep in mind that this is a per-person, per-month charge, and there are no family rates. Higher-income individuals will receive a second letter with an IRMAA surcharge on top of their base premium. This surcharge also applies to their Part D (drug) plan.

The government determines your Medicare premium based on your modified adjusted gross income from two years prior. There are six income categories for IRMAA in 2025.

Planning Your Finances

If your circumstances change, and you believe IRMAA is no longer warranted, you can request a redetermination using this form. It's essential to know your options and make informed decisions about your Medicare costs.

Remember that there are ways to appeal an IRMAA decision. You can find more details in our video here.

In Summary

• Medicare does come with costs.
• It's per person, per month, with no family rates.
• You can request a redetermination of your IRMAA figure if your circumstances change.
• Explore our podcast episode for more in-depth information on IRMAA and how to navigate it. Here is the episode link.

And one final note: regardless of whether you choose a Medigap contract or a Medicare Advantage Plan, you will still pay the monthly Part B premium.