If you're about to turn 65, you may have questions about Medicare costs. After all, Medicare isn't free. The amount of out-of-pocket costs you'll pay depends on the coverage options you choose and what kinds of healthcare services and benefits you use throughout the year. Deductibles are one category of costs you may be responsible for.

What is a deductible?

A deductible is the annual amount you pay for covered healthcare services before your Medicare plan starts to pay. Once you've satisfied your deductible, you'll typically only pay a copayment or coinsurance, and Medicare pays the rest. Both Medicare Part A and Part B have deductibles you may have to pay. If you have Medicare Advantage (Part C) or prescription drug coverage (Part D), you may or may not have a deductible depending on your plan's design.

The Centers for Medicare & Medicaid Services (CMS) has released the 2024 Medicare deductibles for Parts A and B along with premiums and coinsurance amounts. Below, we explain what you can expect in the coming year.

What is the Medicare deductible for 2024?

The 2024 Medicare deductible for Part B is $240. This is an increase of $14 from the deductible of $226 in 2023. Once the Part B deductible has been paid, Medicare generally pays 80% of the approved cost of care for services under Part B. You’re responsible for the remaining costs (20%) for services such as doctor visits, outpatient hospital services, certain home health services, and durable medical equipment (e.g., wheelchairs, hospital beds, home oxygen equipment, diabetes supplies).

The 2024 Medicare deductible for Part A (inpatient hospital) is $1,632, which reflects an increase of $32 from the annual deductible of $1,600 in 2023. This is the amount you’d pay if you were admitted to the hospital. The Part A deductible is not an annual deductible; it applies for each benefit period. A benefit period starts at hospital admission and ends when you’ve been out of the hospital or skilled nursing facility for 60 consecutive (in a row) days. This means you may have multiple benefit periods requiring payment of the Part A deductible several times in a year.

In other words, your 2024 Medicare deductible for Part A would cover your share of costs for the first 60 days of a Medicare-covered hospital stay in a benefit period. On the 61st day of your stay, coinsurance costs would begin to apply.

What is the cost of a hospital stay in 2024?

*These are called "lifetime reserve days" because Medicare will only pay for these extra days once in your lifetime.

What is the cost of a nursing facility stay in 2024?

Under Medicare Part A, there are no deductibles or copayment for:

• Hospice care; there are only minimal costs for medications and inpatient respite care.
• Home health care, as long as you meet the eligibility criteria for coverage.

There are some services that Medicare covers 100%; no deductible applies. These fall under Medicare Part B and are called Medicare Preventive Services. Medicare Preventive Services are just that—health care services designed to prevent disease, promote healthy habits, and detect conditions early in order to avoid complications. They may involve health screenings, lab tests,  and health education to help you take an active role in your health and wellness.

Since they’re also considered preventive care, certain vaccines are fully covered under Medicare Part B. These include the flu vaccine, pneumococcal vaccine, and the COVID-19 vaccines.

As of January 2023, all vaccines covered under Medicare Part D are also free, with no out-of-pocket costs to beneficiaries. Part D vaccines include the shingles vaccine and the Tdap (for tetanus-diphtheria-whooping) vaccine.

Is there a Medicare Part D deductible?

Medicare Part D is a separate health plan that helps cover the cost of prescription drugs. However, in addition to premiums and coinsurance, you may have to pay an annual deductible. Deductibles vary across different Medicare Part D drug plans—and some have no yearly deductible at all. In 2024, the maximum annual deductible for Medicare Part D is $545. This is an increase of $40 from the 2023 deductible.

Part D plans consist of four coverage periods:

• Deductible Period: If your Part D plan covers a medication, you'll pay the full negotiated price subject to your deductible if you have one. Once you've met your deductible, your plan will begin to pay.
• Initial Coverage Period: During this phase, you may have to pay copayments or coinsurance for each medication. For most Part D plans in 2024, the initial coverage period stops once you've accumulated $5,030 in total medication costs (including what you and your plan have paid for covered drugs).
• Coverage Gap: Once you reach $5,030 in total costs, you’ll enter what used to be called the Part D coverage gap. During this time, you will pay no more than 25% of the costs of your plan's covered brand-name prescription drugs.
• Catastrophic Coverage: Starting in 2024, once you reach $8,000 in out-of-pocket costs for covered drugs (including your deductible), you will not have to pay a copayment or coinsurance for covered Part D drugs for the rest of the calendar year.

Is there a Medicare Part C deductible?

Many Medicare Advantage (Part C) plans have low or even no monthly premiums. Some may have separate deductibles for medical care and prescription drugs. However, you'll still be responsible for some out-of-pocket expenses, including an annual deductible. Since Part C is offered through private carriers, the deductible varies from plan to plan. Typically, the lower your deductible, the higher your premium.

As with Medicare Part D, you may be responsible for copayments or coinsurance once you've met your deductible. Before you buy Part C coverage, be sure to compare multiple plans to get a better handle on what costs you'll have to pay.

What will I pay for Medicare Advantage/Part C out-of-pocket costs in 2024?

*Copayments may be required for doctors’ visits, specialist visits, labs, etc.