Original Medicare Part A and B do NOT have an out-of-pocket limit. Therefore, you always pay a share of your health care costs, no matter the amount. Understanding the various Medicare costs is essential for better financial planning.

Out-of-Pocket Costs With Original Medicare

Original Medicare includes several out-of-pocket costs. In fact, you should understand these costs before choosing your Medicare insurance plan. For example, here are some key points:

• Everyone pays a monthly Medicare Part B premium. However, most people receive Medicare Part A without a premium.

• In addition, you must pay Part A and Part B deductibles, adding to the overall Medicare costs.

• You also pay 20% of the Medicare-approved amount for Part B services.

• Under Part A, you pay daily copayments after 60 hospital days in one benefit period.

• Likewise, under Part A, you pay daily copayments after 20 days in a skilled nursing facility (the first 20 days cost $0).

• Finally, you pay copayments for certain medications during hospice care.

You can lower these costs by purchasing a Medicare Supplement Plan. Private insurance companies sell these plans under contract with Medicare. Although the government standardizes the coverage, companies set their own premiums. As a result, comparing plans carefully can save you money.

Annual Out-of-Pocket Maximum With Medicare Advantage Plans

Unlike Original Medicare, Medicare Advantage plans include an out-of-pocket limit. Therefore, these plans offer one of the most important cost protections available.

You can choose a Medicare Advantage Plan as an alternate way to receive Original Medicare. In addition, many plans include drug coverage and extra benefits such as hearing, vision, or dental care. It’s crucial to assess all potential Medicare costs when selecting these plans.

Medicare sets the maximum out-of-pocket limit for these plans. However, each plan decides its own limit as long as it stays under the Medicare maximum. Remember, only costs for Medicare-covered services apply to this limit.

In short, Medicare Advantage Plans protect you from extremely high health care costs.

How We Can Help

We serve as Independent Insurance Brokers for many major carriers. In other words, we compare policies for you instead of promoting just one company. As a result, we can match you with the policy that best fits your needs.

In addition, we proudly help clients in Winchester, VA, Martinsburg, WV, and Charles Town, WV.

For more information, call (540) 662-4432 to schedule an appointment. You can also visit medicaretrustedagents.com or follow us on Facebook at IKnowMedicare.