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What Does It All Cost

All Medicare plans have some level of cost sharing. Here are some of the costs you might be responsible for paying.


A fixed, monthly amount you pay your insurer for your plan coverage.


What you pay before your insurer begins to pay its share of the costs. Some Part C plans charge an annual deductible for medical and/or prescription drug costs.


A defined amount you pay each time you receive care. Copays vary by services and benefits.


A percentage you pay for medical services after you’ve met your deductible. Insurers set their own percentages.

Out-of-pocket maximum

Medicare Advantage plans have an annual limit on how much you pay for covered services. When you reach that limit, you don’t pay additional costs for covered services. Original Medicare doesn’t have this limit.

Part APart BPart CPart DMedicare Supplement
PremiumNo premium if you or your spouse worked and paid Medicare taxes for at least 10 years.Vary depending on income.Vary by plan. Some plans have no premiums.YesYes, varies by plan.
DeductiblePart A deductibles apply to each inpatient stay. YesVary by planVary by planSome plans
CopayVary by service and length of careNoYesVary by planVary by plan
CoinsuranceNoYesYesVary by planVary by plan
Out-of-Pocket MaximumNoNoYesNoNo

Breaking Down Medicare Part D Cost Sharing

There are several stages of cost sharing with Part D plans. Most Medicare drug plans have a Coverage Gap, often referred to as the Medicare “donut hole.” In the Coverage Gap, there is a temporary limit on what the plan covers.


Patient pays

*varies by plan


Patient pays

varies by plan

When total drug costs reach:

2023: $4,660

2024: $5,030

Enter Coverage Gap


Patient pays




Exit Coverage Gap

When out-of-pocket costs reach:

2023: $7,400

2024: $8,000



2023:Patient pays Greater of 5% coinsurance or $10.35 copay

2024:The plan pays the full cost of your covered Part D drugs.


2023:Patient pays Greater of 5% coinsurance or $4.15 copay

2024:The plan pays the full cost of your covered Part D drugs.

Part D Formularies and Your Costs

Part D plans have a Drug List, or Formulary, that shows all the brand-name and generic drugs it covers.

Many plans have a tiered Formulary, where drugs are divided into groups called "tiers".

In general, the lower the tier, the lower the cost to you.

Y0083_2024ABM_AEP_WEBPAGES_M CMS Approved

Last updated 10/01/2023

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