Medicare Out-of-Pocket Costs

Original Medicare (Medicare Part A and Part B) covers some hospital and medical costs, but you're responsible for certain out-of-pocket costs, such as deductibles, copayments and coinsurance. 

Medicare Supplement (Medigap) plans can pay for your Medicare out-of-pocket costs.

You can find a Medigap plan online that pays for out-of-pocket Medicare costs.

Medicare Part A out-of-pocket costs

Medicare Part A (hospital insurance) helps cover inpatient hospital stays, skilled nursing facility care, hospice care, and limited home health care services. Let's take a look at some of the costs associated with Medicare Part A below. 

Part A premium

Your monthly premiums are the amounts you pay each month for your Medicare benefits. Most people do not pay a premium for Medicare Part A, as long as they paid sufficient Medicare taxes while working. 

Part A deductible and coinsurance

Your deductible is how much you must pay out of pocket before Medicare will pay its share for covered services. 

In 2024, the Medicare Part A deductible is $1,632 per benefit period. Benefit periods under Part A are based on how long you've been discharged from the hospital, which means you could encounter multiple Part A benefit periods in the same calendar year if you're hospitalized more than once. 

Once your deductible is met, you'll pay a coinsurance for covered inpatient hospital costs. In 2024, the Medicare Part A coinsurance amounts are as follows:

• First 60 days: $0

• Days 61-90: $408 co-insurance per day

• Days 90+: $816 co-insurance per “lifetime reserve day”

• Days 90+ if you have no reserve days: You pay 100% of the costs

Medicare Part B out-of-pocket costs

Medicare Part B (medical insurance) helps cover outpatient hospital care, doctor’s visits, preventative care, and other medical services. 

Part B premium

The standard Part B premium in 2024 is $174.70 per month. This amount could be higher based on your income. 

Part B deductible and coinsurance

In 2024 the Medicare Part B deductible is $240 per year. Once your Part B deductible is met, you typically pay a 20% coinsurance for covered doctor services, and Medicare pays 80%.

Medigap plans help pay for certain Medicare out-of-pocket costs

Medicare Supplement Insurance (Medigap) plans help pay for certain Medicare out-of-pocket costs, like deductibles, coinsurance and copayments. 

There are 10 standardized Medigap plans available in most states. All 10 Medigap plans provide some level of coverage for:

• Medicare Part A coinsurance and hospital costs

• Medicare Part B coinsurance or copayment

• First three pints of blood

• Part A hospice care coinsurance or copayment

Speak with a licensed insurance agent today to learn more or to find Medicare Supplement Insurance plans in your area. We also offer our guide on how much medicare supplement may cost you!

Or call 1-800-995-4219 to speak with a licensed insurance agent.