What does Medicare cost?
We’ll explain it as simply as possible here, with more details on our website.
Typically, there are costs you pay and costs your Medicare plan pays.
What are your costs?
First, there’s your regular monthly payment for healthcare coverage. This is your premium.
And second: your share of the cost for healthcare services you receive.
This includes deductibles, copays, and coinsurance. Your share of the cost may vary greatly by plan so it’s important to understand what your financial responsibility will be.
For most people, there is no monthly premium for Part A (your hospital insurance). The federal government assesses a premium for Part B (your medical insurance), which is usually deducted right from your Social Security benefits.
With a Medicare Advantage plan (Part C), you’ll pay the Part B premium plus an additional plan premium, but there are options with low or even $0 premiums.
There are separate premiums for a standalone Medicare prescription drug plan (Part D) and Medigap policy (if you add those to Original Medicare).
Here are a few tips for you.
One, think beyond premiums if choosing a Medicare Advantage plan.
A lower monthly premium could mean a higher deductible, higher copays, and higher coinsurance.
Adding a Medigap policy to Original Medicare can cover some costs not paid by Medicare. But Medigap policies tend to have high monthly premiums, and do not cover prescription drugs, so consider whether you’ll actually save.
addition, your cost for healthcare services may be lower with a Medicare Advantage plan than Original Medicare, and prescription drugs are often covered.
And finally, watch your total out-of-pocket costs for healthcare services each year.
Original Medicare doesn’t have a maximum out-of-pocket limit. Medicare Advantage does.
Now, what if you have Medicaid? Then, most of your healthcare costs will be covered by Medicare (though Medicaid may pay for some services not covered by Medicare). As a Medicaid member, you may benefit from several programs, including:
Extra Help, which will cover some or all of your prescription drug coverage premiums, deductibles, coinsurance, and/or copayments.
The Medicare Savings Program, which helps pay your Medicare Part A and/or Part B premiums, deductibles, and/or coinsurance.
And, Special Needs Plans (SNP), a type of Medicare Advantage plan that provides added benefits and savings, at little or no cost.
So, those are the basics of Medicare costs. Knowing what costs you’ll pay and why can help you make better decisions about your coverage.