Understanding the Costs of Medicare: Premiums, Deductibles, and More

Medicare involves many costs, including premiums, deductibles, copayments, and coinsurance to consider. Getting clarity on these topics helps you manage your healthcare and budget effectively. Today we'll cover some of the basics.

• Medicare Part A: This is generally premium-free for most people but comes with deductibles and coinsurance for hospital stays.

• Medicare Part B: This has a standard monthly premium, subject to income adjustments (also known as IRMAA), along with an annual deductible and typically 20% coinsurance for covered services. This is $185 per month for most people in 2025.

• Medicare Part C (aka Medicare Advantage): Premiums are usually $0 (due to federal funding) and out of pocket costs vary greatly by plan (which is why it's important to work with an expert). We find the best plan that fits your specific needs and budget, so it can be different for everyone

• Medicare Part D (Prescription Drug Plans): Premiums, deductibles, copays, and coinsurance levels all vary by plan. So we individualize this coverage for your specific situation. In 2025, these range between $15 a month to $130 a month but these can and will increase over time.

  
  

Understanding these costs upfront allows for better financial planning and avoiding unexpected expenses down the road. One important thing to note is that you either pick a Medicare Supplement plan with a standalone Part D prescription drug plan (the pay more upfront route) or a Medicare Advantage plan (the pay as you go route). You cannot have both at the same time.

For personalized guidance on managing your Medicare costs effectively and picking your best Medicare plan, contact me at 615-579-7592 or email joel@wellnessinsurance.info. My assistance is of no cost to you and does not affect your rates.