Medicare Cost Calculator: What You'll Really Pay in 2027

Quick answer: how much does Medicare cost per year?

For one person with income under the surcharge line, the floor in 2027 is the Part B premium: $209.50 a month (projected), or $2,514 a year. Add a Medigap Plan G, a drug plan and a typical year's bills and it comes to about $5,828; with a Medicare Advantage plan at the average premium, about $4,692 in a typical year but $10,280 in a year with a hospital stay (vs $5,828 with Plan G). For comparison, KFF found people with Medicare spent $6,330 on average out of pocket in 2022 (KFF), but that broader figure also counts dental, long-term care, other insurance premiums and nursing-home residents; the oldest and sickest spend much more.

Medicare costs at a glance: 2026 vs 2027

Sources: 2026 Part A and B, CMS; 2027 Part A and B, the 2026 Trustees Report projections (CMS announces the real amounts in November, usually with the income lines); Part D, CMS's 2027 rate announcement; Advantage limits, KFF for 2026 and BenefitsUSA's summary of CMS's 2027 standards; high-deductible G, CMS 2026 and 2027; average premiums, CMS.

Original Medicare + Medigap + Part D: what you pay

Original Medicare alone has no yearly limit: after the deductibles you pay 20% of every doctor and outpatient bill, however large. A Medigap (Medicare Supplement) policy fills those gaps (Medicare.gov):

• Plan G pays everything except the Part B deductible ($292 projected for 2027). Your yearly medical cost is close to fixed: premiums plus that deductible.
• Plan N costs less a month but leaves you up to $20 per office visit, $50 per ER visit that doesn't end in an admission, and any Part B "excess charges" from doctors who don't accept Medicare's rate.
• High-deductible Plan G pays nothing until your Medicare cost sharing reaches $3,050 in 2027, then works like Plan G. Cheap in a healthy year, the most expensive Medigap path in a bad one.

Premiums vary enormously by state, ZIP code, age, sex and tobacco use. One large seller's 2026 sales averaged $165.85 a month for Plan G and $122.98 for Plan N at 65, rising to about $267 for Plan G at 85 (MedicareSupplement.com); the calculator uses those age-65 averages only as examples. Get real quotes: Medigap plans with the same letter have identical benefits, so price is the main difference. You'll also need a Part D drug plan.

Medicare Advantage: what you pay

You still pay the Part B premium. Many Advantage plans charge no extra premium (about two-thirds of individual plans with drug coverage in 2026, KFF), and the average is $12.00 a month projected for 2027 (CMS). Instead, you pay copays and coinsurance as you use care, up to the plan's yearly limit: no more than $9,850 in network in 2027 ($14,800 in and out of network for PPOs). The average plan's in-network limit was $5,421 in 2026 (KFF). Drug costs don't count toward that limit; they have their own Part D cap. Plans also use networks and prior authorization, which this calculator can't price.

Medigap vs Medicare Advantage: the break-even

The question is simple once you have both quotes: how much would your Advantage copays have to be before Plan G's higher premium pays off? With the example premiums, Advantage costs more once its copays and coinsurance pass $2,570 in a year. A plan with a $5,000 limit and no premium caps your downside: there the worst year with Advantage is $9,914 vs $7,628 with Plan G (drug cap included on both).

With a $5,421 limit, the 2026 average, the very bad year on Advantage comes to $10,479 instead of $14,908. Medicare Advantage usually wins in healthy years and loses in hospital years. If you're healthy now and choose Advantage, know the catch below: switching back to Medigap later isn't guaranteed.

Prescription drugs: the $2,400 Part D cap

Since 2025, what you pay out of pocket for covered drugs is capped each year: $2,100 in 2026 and $2,400 in 2027, with a deductible of up to $700 (CMS). The cap applies whether your drug coverage is a stand-alone plan or part of an Advantage plan. The Medicare Prescription Payment Plan can spread those costs into monthly bills across the year, at no extra cost; it doesn't lower the total. In 2026, 78% of stand-alone plan members were in plans that charge the full deductible (KFF), though Extra Help members don't pay it.

How income changes your cost

Above a set income (from your tax return two years earlier), you pay a surcharge on Part B and Part D, on either path. The calculator adds yours to both totals. For the brackets, the cliffs and how to appeal after retiring, use the IRMAA calculator.

Costs for married couples

Medicare is individual: each spouse pays their own Part B premium, picks their own Medigap or Advantage plan and has their own Part D cap. On a joint return, though, both pay the surcharge set by your combined income. For a couple on Plan G with $120,000 of joint income, a typical 2027 year comes to about $11,656, or $9,383 with two Advantage plans. The calculator assumes both spouses choose the same plans and have the same kind of year; run it once per person for different choices.

Medicare costs over 10 years, and switching back to Medigap

Over 10 typical years at 5% yearly cost growth, the example comes to $75,902 on Plan G vs $59,010 on Advantage. Two things change that picture:

• How your Medigap policy is priced. "Attained-age" policies rise as you age as well as with costs; "issue-age" policies are priced at the age you buy; "community-rated" policies charge everyone the same. Set the extra age rise to 0% for the last two.
• Getting back in. You can buy any Medigap policy without health questions in the 6 months after you're 65 and enrolled in Part B. After that, in most states an insurer can turn you down or charge more if you leave Advantage, except in specific cases (such as a 12-month trial right if you joined Advantage when you first got Medicare at 65, or dropped a Medigap policy to try Advantage for the first time). New York and Massachusetts let you switch any time; several states, including California, Illinois (up to age 75, same insurer) and Oregon, let you switch to equal or lesser coverage around your birthday, and New Mexico starts in 2027 (NAIC).

If your income is low: Extra Help and Medicare Savings Programs

Medicare Savings Programs, run by states, can pay your Part B premium and sometimes your deductibles and coinsurance (Medicare.gov). Extra Help lowers Part D premiums, deductibles and copays; in 2026 the limits are about $1,995 a month of income for one person and $2,705 for a couple, with savings limits (SSA). Both look at your income and savings now, not two years ago, and many states have higher limits. Joining a Medicare Savings Program qualifies you for Extra Help automatically.

What this calculator doesn't include

Dental, vision and hearing (Original Medicare generally doesn't cover them; many Advantage plans include some), long-term care, care outside the U.S., out-of-network care on an Advantage plan, Part B excess charges, and a hospital stay longer than 60 days. Massachusetts, Minnesota and Wisconsin have their own Medigap plans instead of lettered plans like G and N. If you're still working with an employer plan or an HSA, see our employer health plan comparison: you can't contribute to an HSA once you're on Medicare.

Open enrollment checklist

1. Read your plan's Annual Notice of Change: premiums, copays, drug list and network for next year.
2. Compare drug plans with your actual drugs in Medicare Plan Finder: the cheapest plan changes from year to year.
3. Check your Advantage plan's out-of-pocket limit and hospital copays, and run them through the calculator.
4. If you're thinking of leaving Advantage for Medigap, apply for the Medigap policy first and switch only once you're accepted.
5. Changes made by December 7 take effect January 1. Advantage members get another chance January 1 – March 31.

Common questions

How much does Medicare cost per month in 2027?

The Part B premium is projected at $209.50 (up from $202.90), deducted from Social Security for most people. Most people pay no Part A premium. A drug plan, a Medigap policy or an Advantage plan comes on top. The 2027 Social Security raise is 3.6% (SSA), about $75 a month for the average retiree, so the Part B increase takes only part of it; the hold-harmless rule limits the premium increase for people whose raise is smaller, if Part B was already deducted from their check (not new enrollees or people paying an income surcharge) (SSA).

Is Medicare free at 65?

Part A is free if you or your spouse worked about 10 years (40 quarters) paying Medicare tax. Part B is not: everyone pays its premium unless a state program pays it for them.

What's the most I could pay in a year with Medicare Advantage?

Your premiums, plus copays up to the plan's limit (at most $9,850 in network in 2027), plus drug costs up to $2,400: about $14,908 for one person at the maximum limit with Part B.

Is Medigap Plan G worth it compared with Medicare Advantage?

Plan G costs more a month but almost removes medical bills and lets you see any doctor that takes Medicare. It's worth it if you'd rather pay a known amount, expect to use care, or travel; Advantage usually costs less if you stay healthy and are happy with its network.

Do I still pay the Part B premium with Medicare Advantage?

Yes. Some plans pay back part of it (a "Part B giveback"); enter the plan premium minus the giveback, which can be negative.

Sources

1. 2026 Medicare Parts A & B premiums and deductibles — Centers for Medicare & Medicaid Services. Accessed October 18, 2026.
2. 2026 Medicare Trustees Report — Boards of Trustees, Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. Accessed October 18, 2026. Projected 2027 Part A and B premiums and deductibles.
3. Announcement of Calendar Year 2027 Medicare Advantage capitation rates and Part C and Part D payment policies — Centers for Medicare & Medicaid Services. Accessed October 18, 2026. 2027 Part D deductible and out-of-pocket threshold.
4. Medicare Part D 2027 national average monthly bid amount information — Centers for Medicare & Medicaid Services. Accessed October 18, 2026.
5. Medicare Advantage and Medicare prescription drug programs expected to remain stable in 2027 — Centers for Medicare & Medicaid Services. Accessed October 18, 2026. Average 2026 and projected 2027 premiums.
6. CY 2026 Medigap high deductible options for Plans F, G and J — Centers for Medicare & Medicaid Services. Accessed October 18, 2026.
7. CY 2027 Medigap high deductible options for Plans F, G and J — Centers for Medicare & Medicaid Services. Accessed October 18, 2026.
8. Medicare Advantage out-of-pocket limits: variation and trends — KFF. Accessed October 18, 2026.
9. Medicare Advantage 2026 spotlight: a first look at plan premiums and benefits — KFF. Accessed October 18, 2026.
10. Medicare Advantage out-of-pocket maximum 2027 — BenefitsUSA. Accessed October 18, 2026. Summarizes CMS's final CY2027 Part C benefit standards (April 22, 2026).
11. Medicare Part D: enrollment, premiums and cost sharing in 2026 — KFF. Accessed October 18, 2026.
12. Health costs consume a large portion of income for millions of people with Medicare — KFF. Accessed October 18, 2026.
13. How to compare Medigap policies — Medicare.gov. Accessed October 18, 2026.
14. Average cost of Medicare Supplement by age — MedicareSupplement.com (TZ Insurance Solutions). Accessed October 18, 2026. The seller's own 2026 sales data, not a national average.
15. Medigap birthday rule and under-65 chart — National Association of Insurance Commissioners. Accessed October 18, 2026.
16. Medicare Savings Programs — Medicare.gov. Accessed October 18, 2026.
17. Help with prescription drug costs (Extra Help) — Social Security Administration. Accessed October 18, 2026.
18. 2027 cost-of-living adjustment fact sheet — Social Security Administration. Accessed October 18, 2026.
19. How does the hold harmless provision work? — Social Security Administration. Accessed October 18, 2026.
20. Medicare Plan Finder — Medicare.gov. Accessed October 18, 2026.

Last checked October 18, 2026. 2027 Part A and B amounts will be updated when CMS announces them.