Medicare costs, coinsurance and penalties
Save money and delays in coverage by understanding Medicare’s costs, coinsurance and penalties.
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Part A: Hospital Coverage
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Monthly Premium
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$0 for most people. This is provided you or your spouse paid 40+ quarters (10 years) of Medicare taxes, or received Medicare earlier than age 65 and qualify for premium-free Part A.
If not, you’ll pay up to $518 each month, depending on how long you or your spouse worked and paid Medicare taxes.
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Annual Deductible
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$1,676 for each inpatient hospital benefit period. Note: you might have more than one benefit period a year, depending on how many times you visit a hospital.
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Penalties
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If you don’t enroll in Part A when you’re first eligible (usually when you turn 65), you might have to pay a penalty.
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Did you know?
With Original Medicare, there’s no limit on what you could pay out of pocket. That’s why many people choose supplemental coverage, like a Medicare Advantage plan or Medicare Supplement Insurance.
| Part C: Medicare Advantage | |
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Monthly Premium
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Most plans have $0 or low monthly premiums. (But you must still pay your Part B premium.) |
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Annual Deductible
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Varies by plan |
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Penalties
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None, provided you sign up during one of several official enrollment periods. |
| Part D: Prescription Drug Plan | |
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Monthly Premium
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Varies by plan. You may have to pay more, depending on your income. |
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Annual Deductible
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Varies by plan and pharmacy. |
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Penalties
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If your employer does not offer “creditable coverage,” you have 63 days from your 65th birthday to enroll in a Part D plan to avoid a penalty.
If your employer, union or retiree plan stops offering prescription drug coverage, you can join a Medicare drug plan without penalty as long as you do so within 63 days of the end of your current coverage. |
Something to consider about Part D
Most Medicare Advantage plans include Part D prescription drug coverage.
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