How much does Medicare Part A cost?

Medicare is a multipart, government-sponsored health insurance plan. The costs of Medicare Part A vary, depending on factors specific to each person.

Part A generally covers inpatient hospital services, some aspects of emergency treatment, and skilled nursing facilities. It can also help cover hospice care and some home health care. The costs of Medicare Part A will vary depending on multiple factors. These include how much Medicare tax a person pays, the service they receive, and how long they require it.

This article describes how much a person can expect to pay for Medicare Part A, including any out-of-pocket costs that apply.

Glossary of Medicare terms

We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:

• Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.

• Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.

• Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.

• Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.

How much is the Medicare Part A premium?

More than 67 million people in the United States receive Medicare benefits. Most of these people will have Medicare Part A coverage. This part of Medicare helps cover inpatient care in hospitals, skilled nursing facility care, hospice care, and home health care.

For most people aged 65 years and older, the premium for Medicare Part A is $0. According to the Centers for Medicare & Medicaid Services, an estimated 99% of Medicare beneficiaries do not pay a Part A premium.

This $0 premium applies to people who meet at least one of the following requirements:

• They have worked 40 quarters or more while paying Medicare taxes.

• They have received disability benefits from the Social Security Administration or Railroad Retirement Board for at least 24 months.

• They have end stage renal disease (ESRD) or amyotrophic lateral sclerosis, also known as ALS or Lou Gehrig’s disease.

If a person or their spouse is at least 65 but has not completed the 40 quarters, they can still qualify for Medicare Part A.

Those with at least 30 quarters or coverage, or were married to someone with at least 30 quarters of coverage, may buy into Part A for $278 a month. For those with less than 30 quarters of coverage, and certain individuals with disabilities who have exhausted other entitlement will pay the full premium. For 2024, the full premium is $505 a month.

Medicare resources

For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.

What is the Medicare Part A deductible?

Even for people who pay no premium for Part A, this component of Medicare is not always free — a person may face out-of-pocket costs, including deductibles and coinsurance payments. These can change from year to year.

The following are costs of Medicare Part A:

Inpatient stay

• Days 1 to 60: $1,632 deductible

• Days 61 to 90: $408 coinsurance per day

• Days 91 to 150: $816 coinsurance per day when using 60 lifetime reserve days

After a person has used all lifetime reserve days, they must pay all costs.

Skilled nursing facility (SNF) stay

• Days 1 to 20: $0.

• Days 21 to 100: $204 each day.

• Days 101 and beyond: Pay all costs.

Home health care

A person will pay $0 for covered home heath care services. They will cover 20% of the Medicare-approved amount for durable medical equipment (DME). This include equipment such as wheelchairs, walkers, and hospital beds.

Hospice care

A person will pay $0 for covered hospital care services. They will have to pay a copayment of up to $5 for each prescription drug and other similar products while at home. They will also cover 5% of the Medicare-approved amount for inpatient respite care.

What does Medicare Part A cover?

Many people refer to Medicare Part A as “hospital coverage.” Examples of the services that Medicare Part A covers include:

• home care for certain medical issues

• a stay at a hospital or SNF care for treatment

• hospice care

Part A covers inpatient treatment and services to address active health problems that medical care can improve over time.

For example, if a person has broken a hip, they require inpatient treatment, possibly including surgery. Afterward, the doctor may recommend a transfer to an SNF, which will provide physical therapy and changes of surgical dressings, for example. Medicare Part A covers these services.

However, Part A only covers the costs of treatment for active health problems.

This component of insurance would not cover services at an SNF if the person only requires assistance with bathing, feeding, or dressing. Medicare does not consider these services to be medical treatments.

A person can contact Medicare to ask about coverage of specific services and treatments. Doing so can help minimize out-of-pocket costs.

If a doctor thinks that Medicare may not cover a specific service, they may require the person to sign a notification of possible costs.

What are the average out-of-pocket costs?

There is no yearly limit to the out-of-pocket costs an individual may have to pay for Original Medicare (Medicare Part A and Part B). Unless a person has supplemental coverage, such as a Medigap policy, or if they join a Medicare Advantage Plan.

Medicare Part A costs include a share of expenses for any inpatient treatments or care. In 2024, the Part A deductible is $1,632. After paying this amount, coverage will kick in and a person will only pay a portion of the daily costs, dependent on how long they stay in the hospital. For example, a person will pay $408 per day for days 61 to 90 of inpatient care.

How does Medicare supplement insurance affect Part A costs?

Some people choose to reduce out-of-pocket costs associated with Medicare Part A by purchasing Medicare supplement insurance, or Medigap. Private insurers administer Medigap plans.

A person must have Medicare parts A and B to qualify for Medigap. People with Medicare Advantage cannot purchase a Medigap plan. Medicare Advantage is a combination plan, often providing the coverage of parts A, B, and D.

Medicare requires that the various private providers offer consistent Medigap plans. Each plan is assigned a letter, from A to N.

Medigap plans can help offset certain costs of Medicare Part A, including:

• the coinsurance

• hospice care coinsurance or copayments

• the deductible

Costs of Medigap plans vary, based on:

• where a person resides

• whether they have preexisting health issues

• the time of year that a person applies

However, these policies are likely to be most affordable during the Medigap open enrollment period.

A person can enroll in a Medigap plan within 6 months of the original enrollment period. During this time, an insurer cannot refuse to offer a person a Medigap policy based on preexisting medical conditions.

Summary

Most people do not pay a premium for Medicare Part A. However, they may still face out-of-pocket expenses, including deductibles and coinsurance payments.

If a person has worked and paid Medicare taxes for at least 40 quarters, they and their spouse are eligible to receive Part A with no premium.

Anyone with questions about coverage or the best time to enroll in a plan should ask their doctor or contact Medicare directly.

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