Medicare Deductibles

Medicare premiums, deductibles and coinsurance rates for Original Medicare are adjusted each year. Original Medicare includes Medicare Part A hospital insurance and Part B medical insurance. Each has different deductibles.

Once your deductible is paid off, Medicare pays the rest. Know that some copays and coinsurance costs may apply due to other factors, like the duration of your hospital stay.

You can find out if you’ve met your Medicare Part A or Part B deductible for the year at MyMedicare.gov.

For 2024, the Medicare Part A deductible is $1,632 for each benefit period. If you re-enter the hospital or skilled nursing facility at any time after your benefit period ends, you will have to pay the first $1,632 again as a new deductible.

Medicare Part A covers certain hospitalization costs, including inpatient care in a hospital, skilled nursing facility care, hospice and home health care. It does not cover long-term custodial care.

Your 2024 Part A deductible will share costs for the first 60 days you stay in a hospital in one benefit period. You will be responsible for paying coinsurance after 60 days.

For example, let’s say you need hospital treatment for a hip fracture. Your hip fracture treatment will likely cost between $13,000 and $40,000 depending on the severity of your injury and your location. We’ll price the treatment for your fracture at $20,000.

With Part A, your deductible will be met at $1,632, then Medicare will cover the remaining $18,368. According to the Icahn School of Medicine, you’ll likely only stay in the hospital for three to five days, meaning you won’t need to pay any coinsurance.

Your Medicare Part B deductible is $240 in 2024. That’s a $14 increase from 2023.

Unlike Medicare Part A, there is no benefit period tied to Medicare Part B.

After meeting the deductible, you’ll usually have to pay 20% of the Medicare-approved costs for most doctor services, outpatient care and durable medical equipment like wheelchairs or walkers your doctor may order for you.

For example, let’s say you require an electric wheelchair that costs $2,000. If you’ve met your $240 deductible, the electric wheelchair will only cost you around $400, which is 20% of the original cost.

Your deductible for Part D coverage can’t exceed $545 in 2024. Your deductible will vary by plan; some Medicare Part D prescription drug plans don’t have a deductible at all.

According to the Kaiser Family Foundation, 191 Part D stand-alone drug plans didn’t charge a premium at all for enrollees receiving the low-income subsidy plans in 2023.

There are four coverage periods for Part D, which influence your overall costs.

Deductibles for Medicare Part C, also known as Medicare Advantage plans, vary based on the plan you purchase. Medicare Advantage plans are sold by private insurers that have contracts with the Medicare program.

Medicare Advantage plans may offer coverage that absorb some of your out-of-pocket costs. Though Medicare Advantage deductibles may vary, all plans must set a limit on your maximum out-of-pocket (MOOP) expenses. This is a total spread across your deductibles, coinsurance and copayments.

For 2024, the MOOP for Medicare Advantage plans is $8,850 for in-network care. It can be higher for out-of-network care or services. But once you hit your MOOP for the year, the plan must cover 100% of all further costs.

Make sure to explore Medicare Advantage plans in your area and compare deductible costs before making a purchase. Note that some plans have separate deductibles for drug and health coverage. For example, one Humana Medicare Advantage Plan in Florida has a $0 health deductible and a $150 drug deductible.

Medigap, also known as Medicare Supplement plans, can help pay some of your out-of-pocket costs, including your Medicare Part A deductibles.

These plans are sold through private insurers. There are eight standardized plans across 47 states and the District of Columbia. There are different standardized plans for Minnesota, Massachusetts and Wisconsin.

Each Medigap plan has a letter for a name. Some of these plans may cover all or a portion of your Part A or B deductible.

*Plans F and G offer a high-deductible plan in some states. You must pay Medicare covered costs up to the 2024 deductible of $2,800 before your policy provides coverage.

**With Plans K and L, after you meet your 2024 yearly out-of-pocket limit ($7,060 and $3,530, respectively) and Part B deductible, both plans cover 100% of covered services for the rest of the year.