What affects how much you pay for Medicare?

Your income: People who make more money may pay higher premiums for Medicare Parts B and D. This extra amount is called IRMAA (Income-Related Monthly Adjustment Amount). For information on income thresholds and premium adjustments, visit Benefits Planner: Retirement | Medicare Premiums | SSA or 2025 Medicare costs. When you sign up: If you don’t enroll in Medicare Parts B or D when you’re first eligible, you may have to pay a late enrollment penalty. This will increase your monthly Part B premiums by up to 10% for each year you were eligible for Part B but did not sign up. You will pay an extra 1% for Part D monthly premiums if you go 63 days or more without credible drug coverage.
The plan you choose: Different Medicare plans (like Medicare Advantage or Medigap) have different costs for premiums, deductibles, copays, and coinsurance. Medicare Advantage plans and some Medigap plans have a limit on how much you will pay out-of-pocket per year for covered services. Original Medicare does not have a limit on how much you will spend and pays only about 80% of hospital and medical expenses. Choosing a plan that fits your needs can affect how much you pay.
Prescription drugs: The number and type of medications you take can affect how much you pay with a Part D plan. Each plan covers drugs differently depending on the tier of the drug.
Where you live: The cost for Part C, Medigap, and Part D plans can vary by state and county. Where you live can also affect the availability and pricing of certain plans.
Medicaid eligibility: If you qualify for Medicaid, it can help pay for many Medicare costs, including premiums, deductibles, and copays. Other programs may also be available.

Need help estimating your Medicare costs?

Medicare helps many people pay for health care costs, but it’s not free. The amount you pay depends on things like your income, when you sign up, and what kind of coverage you choose. Some plans cost more but offer extra benefits, while others have lower costs but offer fewer benefits. It is important to look at all your options and choose the plan that fits your health and financial needs. Everyone’s Medicare costs are different, so take the time to learn what’s best for you.

Learn more about the different UPMC for Life Medicare Advantage plans and find the one that’s right for you. Or call 1-866-400-5077 (TTY: 711) to speak with an expert Medicare Advisor who can help you find a plan that fits your budget. You can call us Oct. 1 - March 31 seven days a week from 8 a.m. to 8 p.m. and April 1 - Sept. 30 Monday through Friday from 8 a.m. to 8 p.m. and Saturday from 9 a.m. to 3 p.m.

¹State of Medicare Advantage Report, Better Medicare Alliance (2025 report)

How much does Medicare Cost?

Medicare resources