Understanding What You May Pay For Coverage
Medicare helps millions of Americans access reliable healthcare coverage, but it is not entirely free. Understanding how Medicare costs work can help you plan ahead and avoid unexpected expenses.
While the program provides important financial protection for healthcare, there are several types of costs that beneficiaries may encounter depending on the coverage they choose.
How Medicare Costs Work
Medicare costs are generally made up of a few different components. These may include:
- Monthly premiums for certain parts of Medicare
- Annual deductibles before coverage begins
- Out-of-pocket costs such as copayments or coinsurance for services and care
The exact amount you pay will depend on the type of coverage you choose, your income level, and how often you use healthcare services.
Hospital Insurance (Part A)
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$1,736 each benefit period
Medical Insurance (Part B)
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$283 per year.
Prescription Drug Insurance (Part D)
Each Part D plan charges a different premium and deductible.
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No more than $615 per year.
Medicare Part B Medical Insurance Costs
If your modified adjusted gross income as reported on your IRS tax return from two (2) years ago is above a certain amount, you will pay the standard Part B premium and an income-related adjustment amount.
Do Higher Incomes Affect Medicare Costs?
For some individuals, income can affect the amount they pay for Medicare.
If your income is above certain thresholds, you may pay an Income Related Monthly Adjustment Amount, commonly known as IRMAA. This additional amount applies to Medicare Part B and Medicare Part D premiums.
In 2026, IRMAA surcharges for Part B can range from approximately $81 to $487 per month in addition to the standard premium. Part D surcharges can range from about $14 to $91 per month depending on your reported income from two years prior.
Many Medicare beneficiaries remain within the standard premium range, but it is helpful to understand how income can affect costs.
Helping You Understand Your Medicare Costs
Medicare costs are not the same for everyone. Your healthcare needs, medications, and plan choices can all influence the amount you pay.
Strive Medicare helps individuals and families in the La Crosse area understand their potential costs, compare coverage options, and find plans that align with their healthcare needs and financial goals. Our goal is to make Medicare easier to understand so you can make informed decisions with confidence.
Local Medicare Experts. Real Answers. Zero Pressure.
Strive Medicare hosts educational workshops designed to help you better understand your Medicare coverage options before making important decisions about your healthcare. In a relaxed, informative setting, you will gain clear insight into the different types of plans available, including Medicare Advantage, Medicare Supplement, Prescription Drug Plans, and Medicare Add-On coverage.
During the workshop, you will learn how each option works, how they compare, and what strategies may help reduce your overall healthcare costs. Our knowledgeable team is here to answer your questions and walk you through your choices so you can confidently select coverage that fits your health needs, budget, and future plans.
