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 $185/month in 2026 — but 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 can cost over $600/month per person — more than $14,000/year.
| Income (Single) | Income (Married) | Part B Monthly | Annual / Person |
|---|---|---|---|
| ≤$106,000 | ≤$212,000 | $185.00 | $2,220 |
| $106,001–$133,000 | $212,001–$266,000 | $259.00 | $3,108 |
| $133,001–$167,000 | $266,001–$334,000 | $370.00 | $4,440 |
| $167,001–$200,000 | $334,001–$400,000 | $481.10 | $5,773 |
| $200,001–$500,000 | $400,001–$750,000 | $591.90 | $7,103 |
| >$500,000 | >$750,000 | $628.90 | $7,547 |
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, your HSA balance can be used for Medicare Part B, Part D, and Medigap premiums tax-free after age 65. 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: $185.00/month. Part D drug coverage: $15–$100/month depending on plan. Medigap Plan G: approximately $130–$250/month (age-dependent). Medicare Advantage: $0–$80/month average. Total monthly costs typically range from $200 (Medicare Advantage, 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 $106,000 (single) or $212,000 (married). It's based on your MAGI from 2 years prior. 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?
Yes. After age 65, HSA funds can be withdrawn tax-free to pay Medicare Part B, Part D, and Medigap premiums. Medicare Advantage premiums also qualify. HSA funds cannot pay for Medigap premiums before age 65. This makes HSAs one of the best ways to fund Medicare costs — the money that went in pre-tax comes out tax-free for healthcare in retirement.
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