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 inpatient 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 many preventive services. The standard Part B premium for 2022 is $170.10 or higher, depending on your income.
- 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 Medicare Supplement (Medigap) plans may help pay out-of-pocket costs not paid for by Medicare Parts A and B, including copays, deductibles and coinsurance.*