Medicare Costs – What You Can Expect to Pay
Medicare helps cover many healthcare expenses, but it’s not free. Knowing the costs ahead of time helps you budget and avoid surprises.
I’m Jake McGeoy, your local Medicare supplement agent, and I’ll break it down in plain English so you understand exactly what you’ll pay — and what you’ll get for it.
1. Medicare Part A Costs (Hospital Insurance)
- Premium: Most people pay $0 (if you or your spouse paid Medicare taxes for at least 10 years)
- Deductible: $1,632 per benefit period (2025) before coverage starts
- Coinsurance:
- Days 1–60 in hospital: $0 per day
- Days 61–90: $408 per day
- Days 91+ (lifetime reserve days): $816 per day
2. Medicare Part B Costs (Medical Insurance)
- Monthly Premium: Standard amount is $174.70 in 2025 (higher income = higher premium)
- Annual Deductible: $240
- Coinsurance: 20% of Medicare-approved costs after deductible is met
3. Medicare Part C Costs (Medicare Advantage Plans)
- Premium: Varies by plan — could be $0 to $100+ per month
- You still pay your Part B premium
- Copays, deductibles, and out-of-pocket limits depend on the plan you choose
4. Medicare Part D Costs (Prescription Drug Coverage)
- Monthly Premium: $0 – $60+ depending on plan and location
- Annual Deductible: Up to $545 (2025 limit set by Medicare)
- Copays/Coinsurance: Based on your plan’s drug tiers
- Late Enrollment Penalty: Applies if you go without drug coverage when first eligible
5. Medigap (Medicare Supplement) Costs
- Premium: Varies by plan, age, location, and health history
- Purpose: Covers Medicare’s deductibles, copays, and coinsurance — reducing out-of-pocket costs
Out-of-Pocket Maximums
- Original Medicare: No annual limit on what you spend (unless you have a Medigap policy)
- Medicare Advantage: Limit set by your plan (cannot exceed $8,850 in 2025)
Get a personalized cost breakdown
Call Jake McGeoy at 443-797-3923 (TTY 711) for a free insurance cost review. No pressure, no gimmicks — just clear answers.
Jake’s Tip: Medicare costs are predictable if you choose the right combination of plans. A bad fit can mean hundreds — even thousands — more each year.