Medicare Part A (Hospital Insurance) is free for most people, as long as they (or their spouse) paid Medicare taxes for at least 10 years (40 quarters) while working, making it "premium-free Part A". While Part A has no monthly premium for most, it does have deductibles and coinsurance for hospital stays, but some preventative services under Parts A & B, like certain cancer screenings, are also covered at no cost.
Medicare Part A (Hospital Insurance) is free for most people who have worked and paid Medicare taxes for at least 10 years, while Medicare Part B (Medical Insurance) always requires a monthly premium, though the amount depends on your income. Part A covers hospital stays, skilled nursing facilities, hospice, and some home health, whereas Part B covers doctor visits, outpatient care, and preventive services.
Part A is free if you worked and paid Medicare taxes for at least 10 years. You may also be eligible because of your current or former spouse's work.
The cost of Medicare Part C plans (also known as Medicare Advantage plans) varies depending on where you live and the plan you choose. Some plans have $0 monthly premiums. You still have to pay your Part A and Part B monthly premiums.
If you have a Medicare Part D plan, you may pay premiums, deductibles, copayments, and/or coinsurance for your drug coverage. Learn more about the out-of-pocket costs you might pay for a Medicare Part D prescription drug plan in 2026.
Medicare Part D helps cover the cost of prescription drugs. Part D is optional and only provided through private insurance companies approved by the federal government. However, Part D is offered to everyone who qualifies for Medicare.
No one is automatically exempt from Medicare Part B premiums, but many people avoid paying them by having other creditable coverage (like employer plans when still working), qualifying for Medicare Savings Programs (MSPs) through Medicaid due to low income, or having certain disabilities that qualify them for premium assistance. Those automatically enrolled in Medicare who don't need Part B right away (e.g., due to employer coverage) can delay enrollment without penalty.
Some Medicare Advantage plans issue grocery allowances through prepaid debit cards, or flex cards, typically on a monthly or quarterly basis. In addition to healthy food and produce, the cards may cover over-the-counter medicine and products from participating grocery stores, drugstores and other retailers.
Medicare Advantage (Part C) plans can offer coverage for dental and vision health items in addition to also offering the same coverage as Original Medicare. Most also include prescription drug coverage as well as other benefits such as hearing health coverage and gym memberships.
You can avoid paying Medicare Part B premiums by delaying enrollment if you have creditable employer coverage (your own or spouse's job with 20+ employees) until that coverage ends (within 8 months to avoid penalties), or by qualifying for a Medicare Savings Program (MSP) to have state/federal funds pay for it due to low income. Other ways to save include using HSA funds, appealing high Income-Related Monthly Adjustment Amounts (IRMAA) for life changes, or enrolling on time during your Initial Enrollment Period.
Premium-Free Medicare Part A Based on Age
To be eligible for premium-free Part A on the basis of age: A person must be age 65 or older; and. Be eligible for monthly Social Security or Railroad Retirement Board (RRB) cash benefits.
No, Medicare Part A does not cover 100% of hospital bills; beneficiaries pay a deductible per benefit period, followed by daily coinsurance for longer stays (days 61-90, plus lifetime reserve days), meaning you're responsible for costs beyond Medicare's approved amounts unless you have a supplemental plan like Medigap or Medicare Advantage. While Part A covers many inpatient services like semi-private rooms, meals, and general nursing after the deductible, significant out-of-pocket costs remain for extended hospitalizations.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
Here are some of the biggest Medicare mistakes to avoid:
For 2026, the standard Medicare Part B premium deducted from most Social Security checks is $202.90 per month, with higher premiums for higher incomes and a separate annual deductible of $283; some beneficiaries pay less due to the hold harmless rule. Your exact amount depends on your income from two years prior, and you'll also pay 20% coinsurance for most services after meeting the deductible.
Part B only covers about 80% of healthcare costs, leaving you responsible for the remaining 20%. To account for these out-of-pocket costs, you may explore Medicare Advantage plans, which offer the same coverage as Original Medicare but may include additional routine benefits.
Key Takeaways. Medicare Advantage (Part C) plans come with out-of-pocket costs, such as premiums and copayments. These out-of-pocket costs vary among plans, but there is always a yearly maximum that caps what you will spend.
No, Medicare Part D isn't free. But in 2026, at least one $0-premium plan is available in 32 states and Washington, D.C. Most plans do have a monthly premium. And all plans have other costs beyond premiums, such as copays, coinsurance and deductibles.
Who pays the Medicare Levy? If you earned less than $27,222 in the 2024-25 tax year, you won't pay the Medicare Levy. If you earn between $27,222 and $34,027 the Medicare levy phases in at 10 cents for each dollar above $27,222.