Medicare costs

Medicare Part A – Original Medicare

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There is usually no monthly premium for Part A.

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With Medicare Part A, you will be responsible to pay deductibles, copays and coinsurance for services you receive when you’re hospitalized.

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There is no annual limit on the out-of-pocket costs you could spend on Part A deductibles, copays and coinsurance for care you receive at hospitals.


Medicare Part B – Original Medicare

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There is a monthly premium for Part B, which can be automatically deducted from your Social Security check.

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With Medicare Part B, you will be required to meet an annual deductible, and you will have to pay copays and coinsurance for most doctor services, outpatient therapy and durable medical equipment.

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There is no annual limit on the out-of-pocket costs you could spend on Part B deductibles, copays and coinsurance you pay for doctor services.


Medicare Part C – Medicare Advantage

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Medicare Advantage monthly premiums vary by plan. Some plans have no monthly premiums while other plans do. With any Medicare Advantage plan, you still have to pay your Medicare Part B premium.

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All plans feature copays and coinsurance. Depending on which Medicare Advantage plan you buy, you may or may not have an annual deductible.

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Medicare Advantage plans feature an annual limit on the total out-of-pocket costs you’ll spend on Medicare-covered medical services in a calendar year. Once you reach your out-of-pocket maximum, your Medicare Advantage plan covers the full cost of your hospital and medical services.


Medicare Part D – Prescription Drug Plans

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There is a monthly premium for Medicare prescription drug plans, and pricing will vary based on the type of coverage you need.

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Some prescription drug plans feature annual drug deductibles, while others do not. All plans feature copays and coinsurance for prescription drugs.

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There is no annual limit for Medicare prescription drug plan out-of-pocket costs, but once you spend a set amount of money for the year, you move into the “catastrophic coverage” level where you will pay minimal copays and coinsurance payments for your prescription drugs.


Medicare Supplement (“Medigap”) Plans

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There is a monthly premium for Medicare supplement plans, and pricing will vary based on the type of plan you buy. With any Medicare supplement plan, you still have to pay your Medicare Part B premium.

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Depending on the type of plan you buy, most (if not all) of the additional costs of Original Medicare’s deductibles, copays and coinsurance will be covered. (NOTE: many people who buy Medicare supplement plans also buy separate prescription drug plans to cover the cost of their prescription drugs.)

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Medicare supplement plans do not have annual limits on out-of-pocket costs, however, your Medicare Part B and Medicare supplement plan premiums are typically the only money you’ll have to spend – since most (if not all) of the additional costs of Original Medicare’s deductibles, copays and coinsurance are covered.