Medicare Part A and Part B Premium Calculator

Most people assume Medicare is free, but the reality is that your monthly costs depend on your work history and your current income. Understanding how these premiums are calculated is the first step in planning a stable retirement. While Part A is often $0 for most retirees, Part B comes with a monthly bill that can increase if you miss your initial enrollment window.

Use the information below to see where you stand. If you are unsure about your specific costs or potential penalties, Matthew Corrigan and the team at Safeguard Benefit Services are available to review your situation.

Medicare Part A: The Hospital Insurance Cost

For the vast majority of Americans, Part A has a $0 monthly premium. This is because you or your spouse paid Medicare taxes while working for at least 10 years (40 quarters).

If you did not work long enough to qualify for premium free Part A, you may still buy into the program. In 2026, the monthly cost is determined by how many quarters you actually worked. Failing to sign up for Part A when you are first eligible (if you have to pay for it) can lead to a 10 percent penalty that lasts for twice the number of years you waited to enroll.

Medicare Part B: The Medical Insurance Cost

Unlike Part A, everyone pays a monthly premium for Part B. The government sets a standard base rate each year. However, your actual check might be higher based on two main factors:

  • Your Income (IRMAA): If your modified adjusted gross income from two years ago is above a certain threshold, you will pay an Income Related Monthly Adjustment Amount. This is an extra charge added to your base premium.
  • Late Enrollment Penalties: If you wait to sign up for Part B and do not have “creditable” coverage from an employer, you will face a permanent 10 percent penalty for every full 12 month period you delayed. This extra cost never goes away.

Avoid the Lifetime Penalty

The most common mistake we see in Charlotte is people assuming their current health plan is “good enough” to delay Part B. If your employer has fewer than 20 employees or if you are on COBRA, you usually must sign up for Part B immediately to avoid lifetime penalties.

Use the calculator below to estimate your monthly premiums and see if any penalties apply to your timeline.

Need Help? Speak with a Local Medicare Agent.

Safeguard Benefit Services has helped hundreds of people turning 65 understand and enroll in the right Medicare plan — at the right time. Let us help you do the same.

Medicare Premium FAQs

Most people receive Medicare Part A for $0 per month if they have worked at least 10 years. For Medicare Part B, every beneficiary pays a monthly premium. The standard base rate is set annually by the government, but individuals with higher incomes may pay more due to income adjustments. Use our calculator to see the specific standard rates for the current year.

You qualify for premium free Medicare Part A if you or your spouse paid Medicare taxes for at least 40 quarters, which equals roughly 10 years of work. If you have fewer than 30 quarters of work history, you will pay the full monthly premium. If you have between 30 and 39 quarters, you will pay a prorated amount.

The standard Medicare Part B premium is determined by the Centers for Medicare and Medicaid Services each year. This amount is typically deducted from your Social Security check. If you are not yet collecting Social Security, you will receive a bill every three months. Your premium may be higher if you are subject to IRMAA or late enrollment penalties.

The Income Related Monthly Adjustment Amount, or IRMAA, is an extra charge added to Part B and Part D premiums for beneficiaries with higher earnings. Medicare looks at your tax return from two years ago to determine your bracket. If your modified adjusted gross income exceeds certain thresholds, your monthly cost will increase significantly.

Yes, there are permanent penalties for late enrollment. For Part B, your monthly premium increases by 10 percent for every full 12 month period you were eligible but did not sign up. This penalty lasts for life. For Part A, the penalty is also 10 percent but typically lasts for twice the number of years you waited to enroll.

The best way to avoid penalties is to enroll during your Initial Enrollment Period or qualify for a Special Enrollment Period. If you have creditable coverage through a current employer with more than 20 employees, you can often delay enrollment without a penalty. Matthew Corrigan at Safeguard Benefit Services can help you verify if your current plan is considered creditable by Medicare standards.

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