Out-of-pocket costs are a big issue when it comes to choosing a Medicare plan. No plan pays for everything. Premiums, copays and deductibles are usually paid directly by members. Let’s take a look at how your plan options may impact what you’ll need to pay out of pocket for your healthcare.
How Original Medicare works
Original Medicare does not include coverage for prescription drugs or routine dental, vision and hearing care. If you choose Original Medicare, you can pay for those things out of pocket, or you can purchase a stand-alone prescription drug plan and a Medicare Supplement plan to beef up your coverage. These added plans help reduce your out-of-pocket costs, although you’ll pay a separate premium for each.
- Medicare Part A helps cover hospital care, skilled nursing facilities, and some home health services. Most people who paid Medicare taxes while working don’t have to pay a monthly premium for Part A.
- Medicare Part B helps cover medical services including doctor’s visits and preventive services. The 2021 monthly premium for Part B is $148.50, which can be deducted from your Social Security payments. (Higher-income earners pay more.)
- Medicare Part D helps cover prescription drug costs. Costs for Part D depend on things like the plan you choose and what type of prescription drugs you require.
- Medicare Supplement (Medigap) plans can help pay out-of-pocket costs that Medicare doesn’t, including copays, deductibles and co-insurance.*