How much does Medicare Part A cost?

Do I have to pay for Medicare Part A, or is it free?

For most people, Medicare Part A (hospital insurance) is premium-free. This is because Part A is funded through payroll taxes you (or your spouse) paid during your working years. However, whether or not you have to pay for Part A depends on your work history and how long you or your spouse contributed to Medicare taxes.

Here’s how it works:

1. Premium-Free Medicare Part A:

   • You qualify for premium-free Part A if you or your spouse worked and paid Medicare taxes for at least 10 years (40 quarters). Most people fall into this category and do not have to pay a monthly premium for Part A.

   • If you are receiving Social Security or Railroad Retirement benefits, you are automatically enrolled in premium-free Part A when you turn 65.

2. Paying for Medicare Part A:

   • If you (or your spouse) worked less than 10 years (40 quarters) and didn’t pay enough Medicare taxes, you may have to pay a monthly premium for Part A.

     • If you worked between 30 and 39 quarters, the monthly premium for Part A in 2024 is $278.

     • If you worked fewer than 30 quarters, the monthly premium for Part A in 2024 is $505.

3. Eligibility Based on Disability:

   • If you are under 65 and qualify for Medicare due to a disability, you also receive premium-free Part A after receiving Social Security Disability Insurance (SSDI) for 24 months.

4. Additional Costs:

   • Even if you qualify for premium-free Part A, you may still be responsible for other out-of-pocket costs, such as deductibles and coinsurance. For instance, in 2024, the Part A hospital deductible is $1,632 for each benefit period.

If you need help determining your eligibility for premium-free Part A or have questions about your costs, you can schedule an appointment with a Tsunami Advisor here: Schedule an Appointment.