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 include 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 include this limit.
|Part A||Part B||Part C||Part D||Med Supp|
|Premium||No 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.||Yes||Yes, varies by plan.|
|Deductible||Part A deductibles apply to each inpatient stay.||Yes||Vary by Plan||Vary by Plan||Some Plans|
|Copay||Vary by service and length of care||No||Yes||Vary by Plan||Vary by Plan|
|Coinsurance||No||Yes||Yes||Vary by Plan||Vary by Plan|
|Out of Pocket Maximum||No||No||Yes||No||No|
Breaking Down Medicare Part D Cost Sharing for 2021
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.
*varies by plan
varies by plan
Enter Coverage Gap
When total drug costs reach: $4,130
Exit Coverage Gap
When Out-of-Pocket costs reach: $6,550
Patient pays Greater
of $9.20 or 5%
Patient pays Greater
of $3.70 or 5%
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.
Generic drugs typically fall into Tier 1.
Last updated 10/01/2020