A non-government site powered by Health Insurance Associates, LLC., a health insurance agency.
Speak with a licensed insurance agent Mon-Fri, 8AM EST-6PM EST
Medicare Insurance Comparison

Not sure which Medicare plan works for you? Use our easy tool to shop, compare, and enroll in plans from popular carriers.

How much does Medicare cost?

savings, money, annuity insurance, retirement and people concept - close up of senior woman hand putting coin into piggy bank

Just the Essentials…

  • Unfortunately Medicare health insurance, though managed by the United States federal government, is not entirely free.

  • Like anything else, the costs you will pay for Medicare coverage can depend on several factors.

  • Out-of-pocket costs associated with Medicare typically include monthly premiums, deductibles, copays, and coinsurance.

  • Medicare Advantage plans can often offer additional coverage at lower out-of-pocket costs. Contact MedicareInsurance.com to start comparing plans today!

Wait, Medicare costs money?

It’s something that’s happened time and time again; an individual turns 65 years old (or otherwise qualifies for Medicare through disease or disability) and, much to their dismay, are surprised to learn that unfortunately, this is not the case. It’s easy to assume that the Medicare taxes you have paid over the course of your working life mean that coverage will be free once you are eligible, however, Medicare coverage is not entirely cost-free.

However, like anything else, exactly how much you will pay for Medicare coverage depends on several factors. At MedicareInsurance.com, our goal is to inform you about Medicare costs as simply and directly as possible, and help you answer any questions you may have about coverage costs and the options that may be available to you.

Ok, so what are the costs associated with Medicare?

So, how much does Medicare cost? Generally, the out-of-pocket costs you will pay for Medicare depend on a few different factors. These factors include the type of Medicare plan you choose, how often you visit the doctor or go to the hospital, any other health insurance you may have, and whether you qualify for assistance with Medicare costs.

Let’s discuss some of the most common terms associated with Medicare costs, what they mean, and which parts of Medicare include them.

What is a premium?

A Medicare premium is the monthly Medicare payment you must make to keep your healthcare coverage active. Private insurance companies may charge premiums for Medicare Advantage (Medicare Part C) plans and Medicare Part D: Prescription Drug Coverage plans. Medigap supplemental plans will also charge their own monthly premium costs.

The total cost of Medicare Part A typically does not include a monthly premium provided you have worked at least 10 years over the course of your life. The total cost of Medicare Part B will usually carry a monthly premium cost that is dependent on your income level.

What is a deductible?

A Medicare deductible is the out-of-pocket dollar amount you must pay for your own healthcare or prescription drug costs before your Medicare coverage kicks in. Under Medicare Part A, each benefit period carries its own flat-rate deductible. Medicare Part B also carries a flat-rate deductible. 

Medicare Part C (Medicare Advantage), Medicare Part D (prescription drug coverage), and Medigap supplemental plans will have various deductibles that are set by private insurance providers and depend on the plan you choose.

What is a copayment?

A copayment, also known as a copay, is the dollar amount that you must pay out-of-pocket for each medical service you receive.

Under Medicare Part A, copayments may apply for inpatient hospital stays. Under Medicare Parts B and C, copayments usually apply for doctor and specialist visits. Under Medicare Part D, copayments usually occur when picking up prescription medication.

Copayment amounts under Medicare Parts C and D can vary depending on your plan and level of coverage. For individuals with limited income, financial assistance with Medicare copays may be available.

What is coinsurance?

Coinsurance is the amount you may be required to pay for any healthcare services you receive after you pay for any deductibles. This is usually a percentage of the Medicare-approved amount, or a fixed dollar amount. 

With Medicare Part A, coinsurance payments can vary depending on the length of inpatient care you receive. Under Medicare Part B, after you meet your deductible for the year, you will typically pay 20 percent of Medicare-approved healthcare costs including most doctor services, outpatient therapy, or durable medical equipment.

For Medicare Parts C and D, coinsurance amounts vary depending on your exact plan. Most Medicare Advantage and Medicare Part D plans have a yearly limit on how much money you can be asked to pay out-of-pocket. Once this limit has been met, your plan may pay up to 100 percent of covered health services for the rest of the year.

So, if I have to pay for Medicare, which Medicare coverage is ideal for me?

Your ideal Medicare coverage depends on your exact healthcare needs and requirements. However, Medicare Advantage plans are usually a convenient, comprehensive option when it comes to Medicare-backed health insurance.

At MedicareInsurance.com, our licensed agents can help you research and compare Medicare Advantage plans that may be available in your area today. Give us a call or contact us online today to get started!

Get Help