Medicare Surgery CostsWhat you pay for common surgeries under Original Medicare, Medigap and Advantage

Knee and hip replacement under Medicare: what you'll pay

How Medicare covers joint replacement in the hospital or as outpatient surgery, the Part A deductible, rehab costs, and how Medigap and Advantage change the bill.

Medicare covers knee and hip replacements when they're medically necessary. What you pay depends on whether the surgery is inpatient or outpatient and on your coverage.

Inpatient vs outpatient

Many joint replacements are now done as outpatient procedures. Inpatient surgery falls under Part A ($1,736 deductible per benefit period). Outpatient surgery falls under Part B, with 20% coinsurance on surgeon, facility and anesthesia charges. See observation vs inpatient.

Illustrative patient share: Original Medicare alone (Medigap Plan G pays these after the Part B deductible) $0 $1,000 $2,000 $3,000 $400 Cataract (outpatient) $2,936 Knee replacement (inpatient) $2,936 Hip replacement (inpatient) $300 Colonoscopy w/ polyp removal You pay
Illustrative only. Actual amounts depend on the Medicare-approved charges.

Rehab

Physical therapy after surgery is covered under Part B at 20%. Skilled nursing facility care needs a three-day inpatient stay first; see the 3-day rule.

Medigap vs Advantage

With Plan G you typically pay only the $283 Part B deductible. Advantage plans charge copays up to the plan's out-of-pocket maximum; see the MA cap.

Questions people ask

Does Medicare cover knee replacement?

Yes, when medically necessary.

Is joint replacement inpatient or outpatient?

Either; it affects which part pays.

Is rehab covered?

Yes, physical therapy under Part B.

What does Plan G leave me to pay?

Usually only the Part B deductible.

Independent educational site. Not affiliated with or endorsed by the U.S. government, the federal Medicare program, or any insurance company. Figures are 2026 amounts published by CMS unless noted; check Medicare.gov for your situation.