Medicare Deductible Costs – What You Should Know

medicare deductible costs

Medicare deductible costs are a burden for many people over 65.

You may be confused when you receive a bill for a deductible for Medicare – after all, it’s supposed to be a free medical service for seniors. A deductible is an amount that you are required to pay so that the insurance company can kick in its bit. Medicare deductible costs are usually a small percentage of the premium but they can be significant for seniors especially because they are not bringing in any income. That is why it is important to understand what they are and how much you will pay.

You Likely Won’t Pay a Deductible for Part A 

Medicare comes in 4 parts: A, B, C, and D. The deductibles vary by the type of plan. If you are enrolled in Plan A, you will likely not be required to pay Medicare deductible costs. So long as you or your spouse paid Medicare taxes for at least 10 working years, you will not be required to pay anything at all. However, if you don’t qualify, you may be required to pay upwards of $400 a month depending on how much medical care you receive.

Part B Deductible

If you are enrolled under Plan B, which covers outpatient procedures, you will be required to pay a minimum of $198 in deductibles in 2020. Once this is paid up you may also be required to pay 20% of the amount that is approved by Medicare in coinsurance costs. However, you may be eligible for some free services whether you pay the coinsurance or not. If you enroll for Part C your deductibles will be based on those of Parts A and B — since you have to be enrolled in both in order to be eligible for Part C. For Part D, the maximum deductible for this year is $405 but there are some prescription drug plans that have very low deductibles and some even come with no deductible at all.

Get a Medicare Supplement Quote

This all sounds rather steep — how can you pay for it all? The best way to take care of Medicare deductibles every year is to get a FEE quote and enroll in a Medicare supplement plan. For this, you will be required to pay a set amount of premiums every year which will be used to cover your deductibles. The premiums you pay are smaller than you would spend if you paid deductibles directly but you will have the comfort of knowing that whatever your deductible amount is covered every year. Compare plans so that you can choose one that offers the most benefits.

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