Medicare Calculator

Medicare is the federal health insurance program in the United States that primarily covers people aged 65 and older, as well as certain younger individuals with qualifying disabilities or end-stage renal disease. Administered by the Centers for Medicare & Medicaid Services (CMS), Medicare is divided into distinct parts, each covering a different category of healthcare services. Understanding how these parts interact—and what they cost—is essential for anyone approaching retirement age or helping a loved one navigate their healthcare options.

Unlike employer-sponsored insurance, Medicare does not have a single all-inclusive premium. Instead, your total cost depends on which parts you enroll in, your household income (through a mechanism called IRMAA), and whether you purchase supplemental Medigap coverage to fill the gaps left by Original Medicare. This Medicare calculator uses 2024 premium and deductible values to give you a realistic estimate of what you should expect to pay.

The program has evolved significantly since its creation in 1965. Today, beneficiaries can choose between Original Medicare (Parts A and B) and Medicare Advantage (Part C) plans offered by private insurers. Part D adds prescription drug coverage, and Medigap policies sold by private companies can substantially reduce your out-of-pocket exposure under Original Medicare. Each choice carries trade-offs in premiums, flexibility, and cost-sharing that this calculator helps you evaluate in concrete dollar terms.

Knowing your estimated Medicare costs before you retire allows you to plan your savings withdrawals, budget for healthcare inflation, and make informed decisions about when to claim Social Security. Because Medicare premiums for Part B and Part D are typically deducted directly from your Social Security benefit, the interaction between these two programs makes early planning even more valuable.

Medicare is organized into lettered "parts," each covering a distinct set of services. This calculator focuses on the three parts most relevant to ongoing premium and cost planning: Part A, Part B, and Part D.

Part A — Hospital Insurance

Most people qualify for premium-free Part A if they or their spouse worked and paid Medicare taxes for at least 10 years (40 quarters). Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health services. Even though the premium is typically $0, Part A carries a 2024 inpatient deductible of $1,632 per benefit period. This deductible is factored into the annual deductibles shown in this calculator's results.

Part B — Medical Insurance

Part B covers outpatient care, physician visits, preventive services, durable medical equipment, and certain home health services. Unlike Part A, Part B requires a monthly premium. The standard 2024 Part B premium is $174.70 per month, but higher-income beneficiaries pay more through the Income-Related Monthly Adjustment Amount (IRMAA). Part B also carries a 2024 annual deductible of $240. After you meet the deductible, Medicare typically covers 80% of approved costs, leaving a 20% coinsurance responsibility that Medigap can help cover.

Part D — Prescription Drug Coverage

Part D is optional standalone drug coverage, available through private plans that contract with Medicare. The average 2024 Part D premium is approximately $55.50 per month, though actual plan premiums vary widely. Higher-income enrollees also pay IRMAA surcharges on top of their plan premium. Part D plans have their own deductibles and tiered copayments for different drug categories. This calculator estimates your Part D out-of-pocket costs as approximately 25% of annual prescription drug spending, reflecting the average cost-sharing across plans before you reach the catastrophic coverage phase.

The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge applied to Medicare Part B and Part D premiums for beneficiaries whose Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. IRMAA is determined based on your income from two years prior — so your 2024 premiums are based on your 2022 tax return. If your income drops significantly due to retirement or another life-changing event, you can appeal your IRMAA determination using Form SSA-44.

For single filers in 2024, IRMAA brackets increase Part B premiums as follows: income above $103,000 raises the premium to $244.60; above $204,000 raises it to $394.50; above $306,000 to $461.00; above $403,000 to $527.50; and above $500,000 to the maximum of $594.00 per month. Married filing jointly brackets are approximately double the single thresholds, though not exactly — for example, the lowest married bracket starts at $206,000 rather than $206,000 (double of $103,000).

Part D IRMAA surcharges are applied only to single filers in this calculator. The surcharges range from an additional $12.90 per month for income above $103,000 up to $81.00 per month for income above $500,000, stacked on top of your plan's base premium of $55.50.

Medigap, also called Medicare Supplement Insurance, is sold by private insurance companies to fill the coverage "gaps" in Original Medicare — most notably the 20% Part B coinsurance and the Part A deductible. There are ten standardized Medigap plan types (labeled A through N, with some letters retired), and all plans with the same letter must offer identical benefits regardless of which insurance company sells them. The primary difference between insurers is price and service quality.

This calculator includes monthly premium estimates for the most common Medigap plans. Plan G ($200/month in this calculator) is currently the most popular among new enrollees because it covers nearly everything except the Part B deductible. Plan N ($175/month) is a lower-cost alternative that covers Part B coinsurance except for certain office and emergency room visit copayments. Plan K ($100/month) and Plan L ($130/month) cover only a portion of Part B coinsurance — 50% and 75% respectively — which is why this calculator applies residual coinsurance rates of 10% and 5% of your estimated medical costs for these plans.

For Plans G, N, and most others, the calculator assumes that Part B coinsurance is fully covered by Medigap, so your estimated out-of-pocket costs consist only of 25% of your annual prescription drug spending (the Part D gap). If you select "No Medigap," the calculator applies the standard 20% Part B coinsurance to your medical costs plus 25% of Rx costs, which can add thousands of dollars of exposure for beneficiaries with significant healthcare needs.

The Medicare cost calculator combines four components to arrive at your estimated total annual Medicare cost: annual premiums, annual deductibles, and estimated out-of-pocket costs (separate for medical and prescription drug spending). Understanding each component helps you identify where you have flexibility to reduce your overall healthcare spending.

Annual Premiums are calculated by summing your monthly Part B, Part D, and Medigap premiums and multiplying by 12. If your income triggers IRMAA, your Part B and Part D premiums will be higher than the standard rates. Medigap premiums vary by plan type and can range from $0 (no Medigap) to $250/month or more for comprehensive plans.

Annual Deductibles include the Part A hospital deductible of $1,632 (2024) and the Part B annual deductible of $240 (2024) if you are enrolled in Part B. Note that some Medigap plans (notably the now-discontinued Plan F and Plan C for pre-2020 enrollees) cover Part B deductibles, but newer enrollees are not eligible for these plans.

Out-of-Pocket Costs depend on your Medigap plan. Without Medigap, you are responsible for 20% of Part B-approved medical costs. With Plan K, you pay 10% of medical costs; with Plan L, 5%. Most other Medigap plans eliminate Part B coinsurance entirely. Prescription drug costs are estimated at 25% of annual spending regardless of Medigap plan, since Medigap does not cover Part D cost-sharing.

Timing your Medicare enrollment correctly is just as important as understanding what it costs. Missing key enrollment windows can result in permanent late-enrollment penalties that increase your premiums for as long as you remain on Medicare.

Your Initial Enrollment Period (IEP) begins three months before the month you turn 65 and ends three months after — a seven-month window. Enrolling during the first three months of your IEP ensures your coverage starts on the first day of your birthday month. If you wait until your birthday month or after, your coverage may be delayed.

If you or your spouse is still working and covered by qualifying employer insurance, you may defer Medicare enrollment without penalty. Once that employer coverage ends, you have an eight-month Special Enrollment Period (SEP) to sign up for Part B penalty-free. However, retiree coverage and COBRA do not count as qualifying employer coverage for this purpose.

The General Enrollment Period (GEP) runs January 1 through March 31 each year for people who missed their IEP without qualifying for an SEP. Coverage begins July 1, and late-enrollment penalties apply: 10% of the Part B premium for each full 12-month period you were eligible but not enrolled. Part D carries a similar penalty: 1% of the national base beneficiary premium per month of uncovered period.

From a financial planning perspective, use this Medicare calculator annually as your income changes. If a large IRA withdrawal, Roth conversion, or sale of property will spike your MAGI two years from now, that event will increase your Medicare premiums through IRMAA. Conversely, strategically timing income in retirement can help you stay in a lower IRMAA bracket and save hundreds or even thousands of dollars per year in Medicare premiums.