Millions of older Americans receive health coverage through Medicare. And without Medicare, many would no doubt struggle to cover the cost of health insurance.

But that doesn’t mean that coverage under Medicare is completely free. Seniors still face a host of expenses they need to budget for carefully. And in 2025, Medicare enrollees may find themselves on the hook for even larger bills if they end up needing hospital care.

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The cost of Medicare Part A is rising

Most enrollees in Medicare Part A don’t pay a premium for the hospital coverage it provides them with. But Part A enrollees are still subject to deductibles and coinsurance costs that can add up in a very big way. And in 2025, those costs are going up.

Currently, Medicare Part A enrollees pay a $1,632 inpatient hospital deductible. In 2025, that deductible is rising to $1,676.

Meanwhile, that Part A deductible only covers the first 60 days of a hospital stay. From there, a daily coinsurance rate starts to apply.

Currently, for days 61 through 90 of a hospital stay, the daily coinsurance rate is $408. In 2025, it’s rising to $419.

Beyond 90 days, seniors have to dip into their lifetime reserve days for hospital coinsurance. In 2024, the cost there is $816 per day, but in 2025, it’s rising to $838.

Medicare Part A also covers skilled nursing facilities. This year, the cost per day is $204. In 2025, it’s rising to $209.50.

How to keep your Medicare Part A costs manageable

Doing your best to stay healthy is a good way to stave off medical issues that might land you in the hospital. But sometimes, even the healthiest people wind up needing emergency care or surgery.

You may not be able to do much to avoid having to use your Medicare Part A coverage. But one thing you can do to minimize your out-of-pocket costs as a Part A enrollee is buy supplemental insurance known as Medigap.

You can choose from a number of Medigap plans. But your best bet is to put that coverage in place as early as possible. If you sign up for Medigap during your initial enrollment period, which begins on the first day of the month you have Medicare Part B and are 65 or older, then you’re more likely to find affordable coverage than if you wait.

Medigap won’t pay for services not covered by Medicare. But a Medigap plan may help pick up the tab for Part A costs like deductibles and coinsurance so you’re not left to cover them solo.

It’s also a good idea to pad your savings in anticipation of the costs you might face under Medicare Part A. Granted, if you’re already retired and on a tight budget, it may be too late to build up a sizable nest egg. But in that case, you can at least consider some part-time work to boost your income and establish a cushion you can dip into during periods when your medical costs are higher than usual.

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