Medicare Cost Calculator
Medicare is not free. Between Part B premiums, Part D drug coverage, and Medigap or Medicare Advantage costs, most retirees pay $3,500–$7,000+ per year in Medicare-related expenses — more if income triggers IRMAA surcharges. This calculator shows your estimated annual total.
Select your coverage choices and income to see your estimated 2026 annual Medicare costs broken down by component.
Understanding Medicare Costs in Retirement
Medicare has four main parts, each with its own premium structure. Part A (hospital insurance) is free for most retirees who worked 40+ quarters. Part B (medical insurance, doctor visits, outpatient care) charges a standard premium of $202.90/month in 2026, with a $283 annual deductible — and higher-income beneficiaries pay more through IRMAA surcharges. Part C (Medicare Advantage) is a private insurance alternative to Parts A+B. Part D provides prescription drug coverage.
2026 IRMAA Surcharges — How Income Affects Your Premium
IRMAA (Income-Related Monthly Adjustment Amount) adds to your standard Part B and Part D premiums if your income exceeds certain thresholds. Medicare uses your MAGI from two years prior (so 2026 premiums are based on 2024 income). At the highest tier, Part B costs $689.90/month per person — $8,278.80/year, before Part D surcharges.
| Income (Single) | Income (Married) | Part B Monthly | Annual / Person |
|---|---|---|---|
| ≤$109,000 | ≤$218,000 | $202.90 | $2,435 |
| $109,001–$137,000 | $218,001–$274,000 | $284.10 | $3,409 |
| $137,001–$171,000 | $274,001–$342,000 | $405.80 | $4,870 |
| $171,001–$205,000 | $342,001–$410,000 | $527.50 | $6,330 |
| $205,001–$499,999 | $410,001–$749,999 | $649.20 | $7,790 |
| $500,000 or more | $750,000 or more | $689.90 | $8,279 |
Part D IRMAA adds $14.50, $37.50, $60.40, $83.30 or $91.00 per month on the same income tiers. Married people who file separately and lived with their spouse during the year use a shorter schedule: standard premium up to $109,000, then $649.20 (Part B) and +$83.30 (Part D) below $391,000, and $689.90 / +$91.00 at $391,000 or more.
Medigap vs. Medicare Advantage: The Core Trade-Off
Medigap (Medicare Supplement): Works alongside Original Medicare. Covers most cost-sharing (deductibles, coinsurance, copays). Higher monthly premiums ($100–$300+/month) but very predictable out-of-pocket costs. Accepted by any provider nationwide that accepts Medicare — no networks. Best for people who travel frequently, have complex medical needs, or value predictability.
Medicare Advantage (Part C): Replaces Original Medicare with private insurance. Lower monthly premiums (often $0–$50/month) but has network restrictions and copays for services. Often includes dental, vision, and hearing benefits. Works well if you're healthy, stay local, and want to minimize monthly premiums. Risk: the out-of-pocket maximum can be $8,000–$10,000/year if you have serious health events.
To fund Medicare costs tax-efficiently, after age 65 your HSA balance can pay Medicare Part B, Part D and Medicare Advantage premiums tax-free — but not Medigap (Medicare supplement) premiums, which the IRS excludes. See the HSA Calculator to project how much your HSA will cover. For a complete guide to Medicare, read what is Medicare.
Frequently Asked Questions
How much does Medicare cost per month in 2026?
Standard Part B: $202.90/month in 2026 (with a $283 annual deductible). Part D drug coverage: CMS projects an average stand-alone plan premium of $34.50/month for 2026, though plans range widely. Medigap Plan G: approximately $130–$250/month (age-dependent). Medicare Advantage: $14/month on average in 2026, many plans $0. Total monthly premiums typically range from about $215 (average Medicare Advantage plan, no IRMAA) to $600+ (Medigap Plan G with IRMAA surcharges).
What is IRMAA and do I have to pay it?
IRMAA is a surcharge added to standard Part B and Part D premiums for beneficiaries with income above $109,000 (single) or $218,000 (married filing jointly) in 2026. It's based on your MAGI from 2 years prior (2024 income for 2026 premiums). If your income is at or below the thresholds, you pay only the standard premium. IRMAA can be appealed if your income dropped due to a qualifying life event (retirement, divorce, death of spouse).
Is Medigap or Medicare Advantage better?
Medigap offers predictable, capped out-of-pocket costs and any-provider access nationwide. Medicare Advantage has lower premiums but potential high costs during serious illness (up to $8,000–$10,000 out-of-pocket max) and network restrictions. Healthier people who stay local often prefer Advantage for cost savings; those with complex needs or who travel frequently typically prefer Medigap.
Does Medicare cover dental and vision?
Original Medicare (Parts A & B) does NOT cover routine dental, vision, or hearing. Some Medicare Advantage plans include limited benefits. Budget $1,500–$3,000+ annually for dental, glasses/contacts, and hearing aids — or consider separate dental/vision insurance. HSA funds can be used for these costs tax-free.
Can my HSA pay for Medicare?
Partly. After age 65, HSA funds can be withdrawn tax-free to pay Medicare Part A (if you pay a premium), Part B, Part D and Medicare Advantage premiums. Medigap (Medicare supplement) premiums are not qualified expenses at any age. HSA money can also cover deductibles, copays and coinsurance tax-free, which makes it one of the best ways to fund Medicare costs.
Related Calculators
Sources & method
This calculator implements the 2026 Medicare Part B premium and IRMAA schedules published by CMS, plus average-premium assumptions for Part D and Medicare Advantage.
Part B premium ($202.90), deductible ($283), Part B and Part D IRMAA tiers (individual, joint and married-filing-separately): CMS — 2026 Medicare Parts A & B premiums and deductibles
Average 2026 premiums (stand-alone Part D $34.50, Medicare Advantage $14.00): CMS — MA and Part D programs expected to remain stable in 2026
HSA use for Medicare premiums (Medigap excluded): IRS Publication 969
Medigap premiums are illustrative market averages, not a published schedule. (verified 28 September 2026)
Not financial or tax advice. This is an educational estimator. It does not know your full situation, and tax rules change. Akshaya Panda, who builds and verifies these tools, is an engineer — not a financial adviser, accountant, or tax professional. Before acting on a result that matters, check it with someone licensed to advise you.