If you’re about to turn 65 and are deciding on which Medicare plan is right for you, you need to be aware of more than just the benefits that are offered with each plan. You need to be aware of your out-of-pocket costs.
Medicare Part A
Many do not have to pay a monthly premium for Medicare Part A if they receive Social Security benefits. However, if you have to buy Part A, you could pay up to $458 every month for a premium payment. You also will be responsible for paying your inpatient deductible and coinsurance.
Medicare Part B
Unlike Part A, Medicare Part B will require you to pay a monthly premium even if you receive Social security benefits. The standard Part B premium for 2020 is $144.60 but could be higher depending on your income.
You will have a deductible of $198, but once that is met, you will only need to pay 20% of your Medicare-approved services.
You will also need to pay a coinsurance.
Medicare Part C
The premium payment for Medicare Part C varies by plan but can be as low as $0. Depending on the type of Medicare Advantage Plan you choose and who the carrier is, you may have to pay:
Part B premium
Costs from an out-of-network facility
Medicare Part D
The premium payment for Medicare Part D varies by plan, but can also vary by your income. The higher your income, the higher you might pay. You may also be charged a deductible, but the highest deductible a plan can charge is $435 (in 2020).
Check with your plan to see if there is a set copayment or coinsurance for your prescription drugs. If there is a fixed amount, you usually would want to pick the plan with the lowest overall annual cost per year.