There are two parts to Medicare, Part A and Part B. Most people say that Part A is free, but that technically is not accurate. Part A is free when you have worked 40 quarters and paid into Medicare via payroll taxes. Since most people have worked 10 years (40 quarters) by age 65, that is why you pay nothing for this portion. Part A is referred to as Hospital coverage by most and Part B as physician coverage. Part B premium is based on your last two years of averaged earnings and scaled appropriately. The 2024 minimum cost for Part B is $174.40 a month and the maximum, $594.