How Much Does Medicare Cost Per Month? A Breakdown of Original Medicare Expenses

** 3 Min Read Time **

One of the most common questions when considering Medicare is, “How much does Medicare cost per month?” Over the years, I have met with people who thought Medicare insurance was completely free. Others didn’t understand the costs and underestimated what they needed in retirement.

The answer isn’t as simple as a single number because Medicare has multiple parts, each with different costs. Understanding these costs—premiums, deductibles, copayments, and coinsurance—is essential to budgeting for your healthcare in retirement.

Let’s dive into the details to make an informed decision and ensure you get the best coverage for your needs.

Medicare Part A Costs (Hospital Insurance)

Medicare Part A primarily covers inpatient hospital stays, skilled nursing facilities, hospice care, and limited home health services. While many people qualify for premium-free Part A, others may need a monthly premium. These are the costs for 2025.

Part A Premiums

$0 per month – If you or your spouse paid Medicare taxes for at least 40 quarters (10 years).
$285 monthly – If you paid Medicare taxes for 30-39 quarters.
$518 monthly – If you paid Medicare taxes for less than 30 quarters.

Part A Deductibles & Coinsurance

Even if you get Part A premium-free, it doesn’t mean there are no out-of-pocket costs:

Inpatient hospital deductible: $1,676 per benefit period.
Hospital stay coinsurance:
Days 1-60: $0 per day (fully covered after deductible).
Days 61-90: $419 per day.
Days 91 and beyond: $838 per day (for up to 60 lifetime reserve days).
After lifetime reserve days are used up, you will pay all costs.
Skilled nursing facility coinsurance:
First 20 days: $0 per day.
Days 21-100: $209.50 per day.
After 100 days: You pay all costs.

Medicare Cost how much does medicare cost per month

Medicare Part B Costs (Medical Insurance)

Medicare Part B covers outpatient services, doctor visits, preventive care, and medical supplies. Unlike Part A, everyone pays a premium for Part B.

Part B Premiums

Standard premium: $185 per month (in 2025).
Income-related adjustments: If your income is higher, you may pay more (up to $594 per month for those with very high incomes).

Part B Deductibles & Coinsurance

Annual deductible: $257 per year.
Coinsurance: Typically, 20% of Medicare-approved charges after meeting the deductible. 20% is unlimited. There is no cap.
Doctor visits: You pay 20% of the Medicare-approved amount.
Preventive services: Many are covered at 100% (no cost to you).

Understanding Medicare Out-of-Pocket Costs

Original Medicare doesn’t cover the whole amount, so that 20% coinsurance can add up fast, especially if you need frequent doctor visits, outpatient care, or durable medical equipment.

Medicare Supplement (Medigap) or Medicare Advantage plans help cover some of these out-of-pocket expenses.

How to Lower Your Medicare Costs

Check if you qualify for a Medicaid to help with Part B premiums.
Consider a Medigap policy to cover Part A & B costs like coinsurance and deductibles.
Look into a Medicare Advantage plan (Part C), which may bundle hospital, medical, and even drug coverage with lower out-of-pocket expenses.
Use preventive services covered by Medicare to avoid costly treatments down the road.

Get Expert Help with Your Medicare Plan

Understanding Medicare costs can be overwhelming, but you don’t have to navigate them alone! As an experienced licensed Medicare insurance agent, I help seniors find the right Medicare plan that fits their budget and health needs. Let’s ensure you’re getting the best coverage for your money.

Contact us today at 402-614-3389 to speak with a licensed insurance agent professional for a free Medicare consultation!