How much does Medicare Part B cost?

Medicare Part B covers outpatient items such as doctor services, some home health services, and durable medical equipment such as insulin pumps. Part B also covers some preventive services like screenings and vaccines. Although Medicare helps cover the cost of these services, Medicare Part B is not free. You will be responsible for paying deductibles, a standard premium, and copays for covered services.

* If your annual income is less than IRMAA amounts.

** If your doctor accepts a Medicare assignment. Also, there is sometimes no coinsurance (i.e., preventive services).

How much does Medicare Part B cost per month?

With some exceptions, Medicare Part A’s premium is $0 for most consumers, but most Medicare beneficiaries will pay a standard Medicare Part B premium. In 2024, most Medicare enrollees pay a $174.70 monthly premium.

Higher-income beneficiaries will have an Income Related Monthly Adjustment Amount (IRMAA). These higher premiums are based on gross income reported on their tax returns over the previous two years. 

The chart below shows the amount a beneficiary will pay based on their IRMAA. This amount can be determined by a household or an individual, depending on how the income taxes are filed.

How much does Medicare Part B cost per year?

Before Medicare Part B starts paying its cost-share for medical services, the beneficiary must meet the annual Medicare Part B deductible. Once this occurs, Medicare will pay its portion of the Medicare-approved costs for services rendered under Part B. The Part B deductible increased by $14 from $226 in 2023 to $240 in 2024. 

How much does Medicare cover per service?

Items and services covered by Medicare Part B have a coinsurance portion paid by both Medicare and the beneficiary. Once the annual deductible is met, Medicare pays 80%, and the beneficiary is responsible for 20% of the Medicare-approved amount. 

If a provider accepts Medicare but not Medicare assignment, they can charge up to 15% more than the Medicare-approved amount. The Medicare beneficiary is responsible for these Part B excess charges. Medicare coinsurance and Part B excess charges don’t typically change annually.

Coinsurance applies to some covered outpatient items and services associated with your Part B medical insurance. Sometimes, there is no coinsurance, i.e., preventive services and an Annual Wellness Visit.

Cost-sharing with Medicare Part B doesn’t limit out-of-pocket costs, making Original Medicare (Parts A and B) potentially expensive and unpredictable. 

Some beneficiaries enroll in a Medicare Supplement plan (called Medigap) to help cover Medicare costs and coinsurance left by Medicare. Medigap plans are secondary to Original Medicare and cover all or part of the cost-share associated with Original Medicare. 

If you want a plan with an out-of-pocket limit, you may consider enrolling in a Medicare Advantage plan instead of Original Medicare. MA plans combine Parts A, B, and usually D and are required to cover the same benefits as Original Medicare. These plans often include additional benefits, health services, and prescription drug coverage.

Medicare Part B late enrollment penalty 

Late enrollment penalties apply to eligible Medicare beneficiaries who don’t take coverage when they become eligible if they do not already have creditable coverage. The Medicare Part B penalty compounds at a rate of 10% for every consecutive 12-month period that they’re eligible for but don’t enroll in Medicare and don’t have creditable coverage.

The 10% penalty is based on Medicare’s standard Part B premium. In some situations, a beneficiary can delay their Medicare Part B and not be assessed a Part B penalty. Below are some scenarios that allow for delaying Part B without penalty:

• Maintain coverage from a creditable employer group plan
• Maintain coverage from a creditable retirement health insurance plan
• Maintain coverage from any other health insurance that’s considered creditable coverage. 

In all of these scenarios, once you leave or lose your creditable coverage, you’ll have an eight-month Special Enrollment Period to enroll in Medicare Part B before the penalty comes into play.

Many people don’t realize that COBRA and VA coverage isn’t considered creditable coverage for Medicare Part B. 

Is Medicare Part B free for anyone?

While most Medicare beneficiaries are required to pay at least the standard Part B premium, there are some exceptions. Some programs that help pay Medicare premiums for low-income beneficiaries are called Medicare Savings Programs.

These MSPs will cover Part B premiums for individuals who qualify based on their income and assets. Several different types of MSPs cover various costs associated with Medicare, including eliminating the late enrollment penalty. The state can also help pay for your Part B premiums if you qualify for Medicaid. 

Another way to have all or a part of your Medicare Part B covered is a Medicare Advantage plan with a giveback benefit. These Medicare Part C plans aren’t available in all areas, but they can lower the amount you pay for your Medicare Part B premium. Remember that Medicare Advantage plan benefits vary. Some plans may provide more of a reduction than others.

To find the most cost-effective Medicare plan for you, use Medicare’s Plan Finder.