Does Medicare Have a Deductible?
March 8, 2024 | Todd Lewison
Medicare is not always the most straightforward to understand, and associated costs are often a key factor when starting or re-enrolling in a Medicare plan. When you begin researching your Medicare options and enroll in Medicare, it can be difficult to decipher exactly how much everything will cost. Understanding Medicare deductibles is essential for planning your healthcare expenses, so let’s take a closer look at what to expect.
What is a deductible?
A deductible is a term that describes the amount you must pay for health care or prescription drugs before other insurance (Original Medicare, a Medicare Advantage Plan, Part D drug plan, or other insurance) begins to pay part or all of the costs.
Deductibles in Original Medicare
Original Medicare does have deductibles, and these deductibles can vary annually. Understanding the specific amounts and frequency of these deductibles is crucial for effectively managing your healthcare costs under Medicare.
Medicare Part A Deductible
The Medicare Part A deductible is $1,632 (in 2024) and is required each time you’re admitted to the hospital per benefit period (60 full days) before Original Medicare begins to pay. There is no limit to the number of benefit periods you can have; therefore, this deductible can occur several times every year.
Medicare Part B Deductible
Medicare beneficiaries will be responsible for paying $240 (in 2024) before Original Medicare starts to pay for services. You pay this deductible once each calendar year.
These deductibles are required for those enrolled in Original Medicare only. If you have additional coverage such as a Medicare Advantage plan (MA/MAPD) or a Medicare Supplement (Medigap policy) then you likely are not responsible for these deductibles or only a portion of them.
Deductibles on Prescription Medications
Medicare enrollees are required to have prescription drug coverage, whether from a stand-alone prescription drug plan (PDP) or part of a Medicare Advantage plan. Deductibles on prescription medications will vary from plan to plan. With some plans, you must pay a deductible on any medication before receiving coverage from your plan. With other plans, you may only be subject to a deductible on higher-tier medications, and some plans may have no prescription deductible at all. Additionally, the amount you must pay to meet the deductible will vary. However, no plan can exceed the prescription deductible limit in place by Medicare, which is $545 (in 2024).
Medicare Prescription Deductibles: What You Need To Know
Now that you know about the deductibles in Medicare, you can better understand the associated costs of Medicare so you can plan and budget accordingly. Medicare deductibles are a small part of the Medicare equation when determining what type of coverage is ideal for you and your specific needs. Fortunately, you don’t have to have all the answers or spend hours researching them on your own; the professional team of Medicare agents at Twin City Underwriters is readily available to educate you on all of your Medicare options. For over 50 years, they’ve been helping people like you make Medicare decisions.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
