Medicare 101

Costs & Coverage

Understand the premiums, deductibles, copays, and coverage choices that can shape your Medicare budget.

Start With The Basics

What You May Pay

Medicare costs are not one-size-fits-all. What you pay can depend on the coverage you choose, your income, when you enroll, and how often you use care.

A helpful first step is to separate monthly costs, such as premiums, from costs you pay when you receive services, such as deductibles, copays, and coinsurance.

Compare Options

Senior couple reviewing healthcare planning information at home

Know The Terms

Four Costs To Watch

Premiums

A regular amount you may pay each month to keep coverage.

Deductibles

What you may pay before your plan begins sharing certain costs.

Copays

A set amount you may pay for a covered service or prescription.

Coinsurance

A percentage of the approved cost you may pay after meeting a deductible.

Coverage Choices Affect Costs

The way you receive Medicare benefits can influence your monthly premium, provider access, prescription coverage, and out-of-pocket costs.

Original Medicare

Part A and Part B coverage, with the option to add prescription drug coverage and supplemental insurance.

Medicare Advantage

A plan-based way to receive Medicare benefits, often with its own network and cost-sharing rules.

Part D

Standalone prescription drug coverage with premiums, formularies, and pharmacy networks to review.

Medigap

Supplemental coverage that may help pay certain out-of-pocket costs under Original Medicare.

2026 Medicare Costs at a Glance

Updated for 2026. These are common Medicare costs, but your amount can vary based on income, work history, coverage choices, and eligibility for assistance. Covered Part D drugs have a $2,100 annual out-of-pocket cap in 2026. Learn more from Medicare.gov.

Part B Premium

The standard monthly premium for medical insurance.

Standard monthly premium for most people
Higher-income beneficiaries may pay more
Some people receive help paying premiums

$202.90/month

Part A Deductible

The inpatient hospital deductible per benefit period.

Deductible applies to each benefit period
Most people qualify for premium-free Part A
Hospital stay costs can continue after the deductible

$1,736

Part A Premium

For people who do not qualify for premium-free Part A.

$311/month with 30–39 work credits
$565/month with fewer than 30 work credits
Most people do not pay a Part A premium

$311 or $565/month

Need Guidance?

Make Sense Of Your Options

Get clear, consumer-friendly help preparing questions about Medicare costs and coverage choices.

Get Help