Learn
Understanding Medicare Costs
Knowing the vocabulary makes it much easier to compare coverage and read plan documents.
Common cost terms
- Premium
- The amount you pay regularly (usually monthly) to have coverage, whether or not you use services.
- Deductible
- The amount you pay for covered services before your plan starts to pay its share.
- Copayment
- A fixed amount you pay for a covered service, such as a doctor visit or prescription.
- Coinsurance
- A percentage of the cost you pay for a covered service after your deductible — for example, 20%.
- Out-of-pocket maximum
- In Medicare Advantage plans, a yearly cap on what you pay for covered Part A and B services. Original Medicare does not have this cap.
- Out-of-pocket expenses
- Everything you pay yourself for care — deductibles, copays, coinsurance, and services your coverage doesn't include.
Why costs differ
Your costs depend on the type of coverage you have, the plan you choose, where you live, your income, which services and drugs you use, and whether your providers are in network. Medicare's standard amounts are updated every year.
We don't quote prices or promise savings. For current official amounts, see Medicare costs on Medicare.gov.
Have a general question?
Reach our team by phone or send us a message.