What you pay for Medicare depends on how much you earn each year and how much care you need. You pay a separate amount for each part of Medicare.
Medicare Part A
Part A is your hospital coverage.
Premium costs. If you or your spouse worked for at least 10 years and paid Medicare taxes, you won't pay any monthly fee, called a premium, for Part A. Most people don’t pay a premium.
If you or your spouse paid Medicare taxes for less than 10 years total, you will have to pay a monthly fee for Part A coverage. In 2013, the cost was as much as $441 a month.
Deductible costs. If you stay overnight in the hospital or use other Part A services, you'll pay a deductible. The deductible is the amount you must pay before Medicare pays anything for your care.
For 2013, the deductible for a hospital stay is $1,184.
Copay costs. You also pay copays for Part A. It's a set amount you pay for specific types of care. If you're in the hospital for more than 60 days, your copay is $296 a day for days 61 to 90. After that, your copay is $592 a day.
Medicare Part B
Part B is for your doctor visits, tests, and other services.
Premium costs: Each month you pay a premium of $104.90. If your income is higher than $85,000, you have to pay a higher premium. How much you make determines how much you pay, ranging from $146.90 to $335.70.
Deductible costs: You also pay a $147 deductible each year. After you pay it, you pay coinsurance, which is 20% of your medical costs.
Penalties: If you don't sign up for Part B when you first become eligible, you may have to pay a penalty if you did not have health insurance through an employer or union.
Medicare Part D
Part D is your prescription drug coverage.
Premium costs. The monthly fee you pay varies by the plan you choose. The average premium for the last 3 years has been $30, and in 2014, it's predicted the average will be $31. If you have a higher income, you may pay more each month. In 2013, households with income of more than $170,000 or individuals with income greater than $85,000 will pay between $11.60 and $66.60 more per month.
Deductible costs: Each year you pay a deductible before Medicare starts sharing the cost for your medicines. Although the deductible may vary from plan to plan, no plan may charge more than $325 in 2013. In 2014, the maximum will be $310.