Medicare costs, including premiums, vary with a person’s circumstances, such as their income. These costs change annually.
Medicare premiums are monthly fees that individuals pay for coverage of doctor’s appointments, lab tests, outpatient services, and more.
These premiums are subject to yearly changes and vary by income. Most individuals do not pay a premium for Part A. Part B, Part D, and Medicare Advantage (Part C) plans have varying premiums.
Glossary of Medicare terms
- Out-of-pocket cost: This is the amount a person must pay for care when Medicare does not pay the total amount or offer coverage. Costs can include deductibles, coinsurance, copayments, and premiums.
- Premium: This is the amount of money someone pays each month for Medicare coverage.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before Medicare starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, coinsurance is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Medicare premiums can change each year and across parts A, B, C, and D.
For example, as shown in the chart below, both premiums and deductibles increased for Original Medicare (parts A and B) from 2024 to 2025.
| Part A 2024 | Part A 2025 | Part B 2024 | Part B 2025 | |
|---|---|---|---|---|
| Deductible | $1,632 | $1,676 | $240 | $257 |
| Premium | $0–$505 | $0–$518 | $174.70 standard | $185 standard |
Part A
Part A premiums show a range of costs because the amount depends on how many quarters a person worked. For example:
- If a person worked at least 40 quarters and paid Medicare taxes, they qualify for premium-free Part A and pay $0 for a monthly premium.
- If a person worked at least 30 quarters and paid Medicare taxes, their premium in 2025 is $285. A person who is married to someone who worked for 30 quarters also qualifies for this premium.
- If a person did not work 30 quarters and did not pay Medicare taxes, their premium in 2025 is $518.
Part B
Most people pay the basic premium for Part B, which is $185 in 2025. The premium depends on a person’s modified adjusted gross income (MAGI) from the previous 2 years. For example, the premium for 2025 is based on the MAGI for 2023.
However, if a person’s income from 2 years ago is above a certain amount, they will pay the basic premium plus an income-related monthly adjustment amount (IRMAA).
The following table shows the IRMAA amounts for 2025.
| Individal tax return income | Joint tax return income | Adujsted amount | Total monthly premium |
|---|---|---|---|
| Less than or equal too $106,000 | Less than or equal to $212,000 | $0 | $185 |
| Greater than $106,000 to $133,000 | Greater than $212,000 to $266,000 | $74 | $259 |
| Greater than $133,000 to $167,000 | Greater than $266,000 to $334,000 | $185 | $370 |
| Greater than $167,000 to $200,000 | Greater than $334,000 to $400,000 | $295.90 | $480.90 |
| Greater than $200,000 to less than $500,000 | Greater than $400,000 to less than $750,000 | $406.90 | $591.90 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $443.90 | $628.90 |
Read about changes to Medicare in 2025.
2026 Medicare changes
We’re currently updating this article to reflect 2026 costs and other changes.
Read more: Medicare cost changes in 2026
Medicare Advantage (Part C) plans are offered by private health insurance companies and they must provide at least the same coverage as Original Medicare.
Medicare Advantage plans may also cover prescription drugs, as well as certain other benefits, such as vision, dental, and hearing care.
Premiums vary among Medicare Advantage plans and plan providers.
A person pays the Medicare Advantage plan premium to the plan provider, and they must also pay the Medicare Part B premium.
Learn about Original Medicare vs. Medicare Advantage.
Medicare Part D provides prescription drug coverage for individuals with Original Medicare. Private health insurance companies offer these policies. These providers decide which prescription drugs are covered in their plans.
The drug list is called a formulary, and all Part D policies must cover Medicare-allowed drugs — though they may also offer additional drugs.
The Part D average basic premium for 2025 is $45.
Read about Medicare Part C vs. Part D.
There are several ways that a person can reduce Medicare costs, including:
The following sections will look at each of these in more detail.
Medigap
Medicare supplement insurance (Medigap) can help fill gaps in Medicare coverage, including deductibles, copays, and coinsurance.
There are 10 Medigap plans, each identified by a letter: A, B, C, D, F, G, K, L, M, and N. The plans are standardized across the U.S., with the exception of Minnesota, Wisconsin, and Massachusetts.
People can use this online tool to find a Medigap policy.
Medicaid
Medicaid is a means-tested program that can help people with medical costs, and it may offer additional benefits. It is a joint federal and state program, and eligibility may differ between states.
People can check online for the rules in their state and how to apply.
Extra Help
Extra Help is a federal assistance program that may help people with Medicare prescription costs, including premiums, coinsurance, and deductibles.
The program reduces annual prescription drug costs for each recipient by around $5,900 per year, according to the Social Security Administration.
A person may automatically qualify for the program, or they can also check online to see if they qualify for Extra Help.
Medicare savings programs
There are four Medicare savings programs. These can help people with a low income. Each program has different eligibility rules, and they also may offer different benefits.
The programs are as follows:
- the Qualified Medicare Beneficiary program
- the Specified Low-Income Medicare Beneficiary program
- the Qualifying Individual program
- the Qualified Disabled and Working Individuals program
People can check with their state to find out about eligibility and benefits.
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.
Medicare premiums are monthly fees individuals pay in order to use the coverage the plans provide. These plans vary by income, plan type, and sometimes by state. They also change annually.
Several programs may help a person reduce their Medicare costs.