How much does Medicare Cost?

How much does Medicare cost in 2026?

Medicare is a federal health insurance program for people 65 and over or under 65 with certain disabilities. Many people think Medicare is free, but that is not the case. While some parts of Medicare may have a $0 monthly premium, most will still have to pay something out-of-pocket. This can include monthly premiums, deductibles, copays, and coinsurance. How much you pay can depend on the Medicare part, your income, and the plan you choose. Knowing these costs ahead of time can help you make the right choice for your budget and avoid surprises. 

The following table outlines the typical costs for each part of Medicare and Medigap plans in 2026: 

Medicare Part	What it covers	Costs
Part A	Inpatient hospital stays	Typically, $0 monthly premium and $1,736 deductible in 2026.
Part B	Doctor visits and outpatient care	Typically, $202.90 monthly premium and $283 yearly deductible in 2026.
Part C	Medicare Advantage	Vary by plan, but monthly premiums range from $0 to $200. They may also have deductibles, copays, and coinsurance. They have out-of-pocket limits.
Part D	Prescription drugs	Premiums vary by plan; 2026 average is $34.50, plus deductibles, copays, or coinsurance.
Medigap	Helps pay costs not covered by Parts A and B	Monthly premium varies widely by plan, but most people pay $100 - $300 per month and must also buy a separate Part D plan.

Key Medicare cost terms explained 

As you research Medicare and look for plans, you will see several words relating to costs associated with Medicare. It is important to understand the difference between these terms to help you determine what you will pay for your coverage and at the time care is received.

• Premium: The amount you must pay every month to have Medicare coverage, either to Medicare or a private insurance company for Part C and D or Medigap plans.
• Deductible: A set amount you pay for covered services before your plan begins to pay for the cost of your care. 
• Copay: A set amount you pay when you receive a covered service. For example, you may have a $5 copay for a doctor visit.
• Coinsurance: A percentage of the cost you pay when you receive covered services (for example, 20%).
• Maximum out-of-pocket: This is the most you have to pay during the coverage year for covered medical services. Not all costs apply. Once you reach this limit, your plan will pay for all covered medical service costs.

How much does Medicare Part A (hospital insurance) cost? 

Medicare Part A helps pay for inpatient care in the hospital. It also covers short stays in skilled nursing facilities after a hospital stay, hospice care, and some home health care. Here are some costs you might have to pay in 2026:

• Premium: Most people get Part A for free if you or your spouse worked for at least 10 years and paid Medicare taxes. If you don’t qualify for $0 premium for Part A, you may be able to buy it. Depending on how long you or your spouse worked, you will pay either $311 or $565 per month. You must sign up for Part B to buy Part A.
• Deductible: $1,736 deductible per benefit period for inpatient hospital stays before Medicare starts paying. 
• Hospital stay coinsurance:
  • Days 1-60: $0 after you pay the deductible.
  • Days 61-90: $434 per day.
  • Over 90 days: $868 per lifetime reserve day. These are extra days that Part A covers after 90 days. You get a maximum of 60 days over your lifetime.
  • After 150 days: You pay all costs.
• Skilled nursing facility coinsurance:
  • Days 1-20: $0 after you pay your deductible.
  • Days 21-100: $217 per day.
  • Over 100 days: You pay all costs.
• Late penalty: You may have to pay up to a 10% monthly penalty if you don’t sign up for Medicare when you are first eligible. You will have to pay the penalty for twice the number of years you didn’t sign up.

How much does Medicare Part B (medical insurance) cost?

Medicare Part B helps pay for outpatient medical services. This includes doctor visits, outpatient surgery, lab tests, preventive services like flu shots and cancer screenings, medical equipment like walkers or wheelchairs, and home health services. Here are some costs you may have to pay for Part B in 2026: 

• Premium: Most people pay a $202.90 monthly premium. This can be higher depending on your income and this amount can change each year. Visit Medicare.gov costs to see a list of adjusted monthly premiums and income thresholds.  
• Deductible: $283 yearly deductible before Medicare starts to pay for medical services. 
• Coinsurance: Typically, 20% of the cost of services after you meet your deductible. 
• Late Penalty: Unless you qualify for a Special Enrollment Period, you may have to pay a penalty if you don’t sign up for Medicare when you are first eligible. You will pay an extra 10% for each year you didn’t sign up. This is a lifetime penalty.

How much does Medicare Part C (Medicare Advantage) cost?

Medicare Advantage plans, or Part C, is a type of Medicare plan offered by private insurance companies approved by Medicare. It combines Part A, Part B, and sometimes Part D (prescription drug coverage) into one plan and often includes other benefits not covered by Original Medicare, like dental, vision, hearing, fitness memberships, and an allowance to buy health care products. Having all these benefits in one plan can help save you money over buying separate plans or paying out-of-pocket for dental, vision, or hearing services. In fact, Medicare Advantage members save around $3,500 per year over beneficiaries with Original Medicare alone.¹ Part C plan costs vary depending on the plan and these amounts can change each year. Here are some costs you may have to pay for Part C in 2026:

• Premiums: Monthly premiums usually range from $0 to $200, depending on the level of coverage and benefits offered.
• Original Medicare premiums: You must still pay your monthly Part A (if applicable) and Part B premiums to Medicare. Some Medicare Advantage plans help pay your Part B premium. 
• Deductibles, copays, and coinsurance: There are out-of-pocket costs such as copays, deductibles, and coinsurance that vary by plan. Check your plan’s summary of benefits to see which costs you are responsible for.
• Maximum out-of-pocket costs: Medicare Advantage plans offer a maximum out-of-pocket (MOOP) to help protect you from unexpected costs. This is the most you will pay during the coverage year for medical services. Once you reach this limit, your plan will pay for all covered medical services. This limit can be up to $9,350, but individual plans may be lower. 

How much does Medicare Part D (prescription drug coverage) cost?

Medicare Part D helps pay the cost for prescription drugs. Part D can be included in your Part C plan or through a standalone Part D plan through a private insurance company. Original Medicare does not cover Part D, so you will need to get a separate Part D plan. Here are some costs you may have to pay for Part D in 2026:

• Premiums: Part D plans may have a monthly premium that varies by plan. The average in 2026 is $34.50. However, if your income is above a certain amount, you will pay a higher monthly premium. Visit Medicare.gov costs to see a list of adjusted monthly premiums and income thresholds.
• Deductible: This is the amount you pay out-of-pocket before your coverage begins. This varies by plan and not all plans have a deductible. The maximum deductible for Part D is $615 per year.
• Copays and coinsurance: Once you reach your plan’s deductible, you pay a portion of the cost for each prescription. This varies by plan and drug tier. 
• Maximum out-of-pocket: Once your total yearly out-of-pocket drug costs reach $2,100, you will no longer pay anything for your covered Part D prescription drugs.
• Late penalty: You will pay a penalty if you don’t sign up for Part D when you are eligible or go 63 days or more without drug coverage. You will pay an extra 1% for each month you didn’t sign up.

What about Medigap (Medicare Supplement) costs? 

Medigap plans, also called Medicare Supplement Insurance, are sold by private insurance companies. These plans help pay for costs that Original Medicare (Parts A and B) doesn’t cover, like deductibles, copays, and coinsurance. Medigap plans don’t cover prescription drugs, so you will need to get a separate Part D plan. You must have Medicare Parts A and B to buy a Medigap plan. Here are some costs you may have to pay:

• Premiums: Monthly premiums vary by plan and where you live but are usually between $100 and $300 per month. You must also keep paying your Part A (if applicable) and Part B premiums to Medicare.
• Deductibles, copays, and coinsurance: Most are covered by the plan, depending on which one you choose.
• Out-of-pocket limit: This is the most you will pay for covered services in a year. Some plans have no limit, but others do. Once you reach your limit for deductibles, copays, and coinsurance, your plan pays for covered services for the rest of the year.
• Late penalty: You have six-month period to enroll in a Medigap plan starting the first month you have Medicare Part B for those 65 and older. This is a one-time enrollment period and doesn’t repeat every year. If you do not enroll during this period, you may not be able to buy a Medigap plan or it may cost more. 

What affects how much you pay for Medicare? 

• Your income: People who make more money may pay higher premiums for Medicare Parts B and D. This extra amount is called IRMAA (Income-Related Monthly Adjustment Amount). For information on income thresholds and premium adjustments, visit Benefits Planner: Retirement | Medicare Premiums | SSA or 2025 Medicare costs. When you sign up: If you don’t enroll in Medicare Parts B or D when you’re first eligible, you may have to pay a late enrollment penalty. This will increase your monthly Part B premiums by up to 10% for each year you were eligible for Part B but did not sign up. You will pay an extra 1% for Part D monthly premiums if you go 63 days or more without credible drug coverage.
• The plan you choose: Different Medicare plans (like Medicare Advantage or Medigap) have different costs for premiums, deductibles, copays, and coinsurance. Medicare Advantage plans and some Medigap plans have a limit on how much you will pay out-of-pocket per year for covered services. Original Medicare does not have a limit on how much you will spend and pays only about 80% of hospital and medical expenses. Choosing a plan that fits your needs can affect how much you pay.
• Prescription drugs: The number and type of medications you take can affect how much you pay with a Part D plan. Each plan covers drugs differently depending on the tier of the drug.
• Where you live: The cost for Part C, Medigap, and Part D plans can vary by state and county. Where you live can also affect the availability and pricing of certain plans.
• Medicaid eligibility: If you qualify for Medicaid, it can help pay for many Medicare costs, including premiums, deductibles, and copays. Other programs may also be available.   

 

Need help estimating your Medicare costs?

Medicare helps many people pay for health care costs, but it’s not free. The amount you pay depends on things like your income, when you sign up, and what kind of coverage you choose. Some plans cost more but offer extra benefits, while others have lower costs but offer fewer benefits. It is important to look at all your options and choose the plan that fits your health and financial needs. Everyone’s Medicare costs are different, so take the time to learn what’s best for you. 

Learn more about the different UPMC for Life Medicare Advantage plans and find the one that’s right for you. Or call 1-866-400-5077 (TTY: 711) to speak with an expert Medicare Advisor who can help you find a plan that fits your budget. You can call us Oct. 1 - March 31 seven days a week from 8 a.m. to 8 p.m. and April 1 - Sept. 30 Monday through Friday from 8 a.m. to 8 p.m. and Saturday from 9 a.m. to 3 p.m.


¹ State of Medicare Advantage Report, Better Medicare Alliance (2025 report)