How much does Medicare cost?

Click on words in blue for definitions.


Part A – There is no premium for Part A for those who are eligible for Medicare.  

If you are admitted to a hospital in 2020, you would be responsible for a $1,408 deductible, which covers hospital services for a period of up to 60 days per admission.

Part B – Your premium is based on your “modified” adjusted gross income.  That is your income as reported on your IRS tax return from 2 years ago plus any tax-exempt interest you may have received, such as from a municipal bond.

Most people pay the standard Part B premium of $144.60 per month in 2020.  That premium increases to $148.50 for most.  This amount is deducted from Social Security or Railroad Retirement Benefits, or if a person is not receiving either benefits, then the person can pay quarterly by check, by credit card or by automatic withdrawal from a bank account.

If you don’t have other Medicare insurance coverage, the  first time you use the Part B benefit in 2020, you will be responsible for paying a deductible amount of $198.00, rising to $203 in 2021.  You are also responsible for paying 20% of the Medicare approved amount for all Part B services you receive.

For 2021, the Income Related Monthly Adjustment Amount for Part B premiums are shown below.

If your Modified Adjusted Gross Income for 2019 was: Your monthly
premium will be:
File Individual Tax Return File Joint Tax Return  
$88,000 or less $176,000 or less $148.50
$88,000 – $111,000 $176,000 – $222,000 $207.90
$111,000 – $138,000 $222,000 – $276,000 $297.00
$138,000 – $165,000 $276,000 – $330,000 $386.10
$165,000 – $500,00 $330,000 – $750,000 $475.20


Individuals earning above $500,000 per year, or those filing jointly earning more than $750,000 per year, pay $568 premium per month for their Medicare coverage.

The additional monthly premium paid by higher income individuals is known as the “Income Related Monthly Adjustment (IRMA).”  In calculating the Modified Adjusted Gross Income, all interest receipts are added to your adjusted gross income.  The adjusted gross income is all income BEFORE deductions.  It is more than your taxable income.

If you are subject to IRMA, you will also be charged an additional IRMA amount for Part D Prescription Drug coverage.

Part B premium is deducted from your monthly retirement payment. If you are not yet getting retirement benefits, you will be sent a bill for your Part B premium.