Does Medicare Have a Deductible?
Among some of the first questions asked by new Medicare enrollees is whether or not Medicare has a deductible. Medicare does in fact have a standardized deductible for Part A and Part B while deductibles for Part C and Part D will vary from one plan to the next.
Medicare Part A Deductible
The Medicare Part A is $1,364 per benefit period in 2019.
While most people new to Medicare are likely accustomed to annual deductibles, the Medicare Part A deductible works slightly differently. Instead of resetting on a yearly basis, the Part A deductible resets at the end of every “benefit period.”
A benefit period begins on the first day a patient arrives at a hospital, mental health facility or skilled nursing facility for an inpatient stay. The benefit period then ends when the patient has been out of the facility for 60 consecutive days.
Some of the things that count toward the Part A deductible include:
- Hospital care
- Skilled nursing facility care
- Nursing home care
- Hospice care
- Home health services
Once the deductible is met, Medicare Part A recipients will typically be responsible for copayments and coinsurance costs.
Medicare Part B Deductible
The Medicare Part B deductible is far less than that of Part A. For 2019, Part B requires a deductible of $185. And unlike the Part A deductible, Part B’s deductible operates on an annual basis.
Just as with Part A, copayments and coinsurance responsibilities take effect once the Part B deductible has been satisfied.
Part C and Part D Deductibles
Unlike Part A and Part B, the remaining two parts of Medicare do not come with standardized deductibles.
Medicare Part C is better known as “Medicare Advantage” and is comprised of plans designed to cover everything that is covered under Original Medicare (Medicare Part A and B together).
Because Medicare Advantage plans are sold by private insurance companies, any out-of-pocket costs such as premiums, deductibles and copayments may vary from one plan to another.
Medicare Part D consists of plans designed to provide coverage for prescription drugs. Much like Medicare Advantage plans, Medicare Part D plans are sold by private insurers and each company’s plans may have differing deductibles and other costs.
Paying for Medicare Deductibles
Medicare Supplement Insurance (Medigap) provides full or partial coverage for the Medicare Part A and Part B deductibles. So instead of paying out of pocket to meet a deductible, you can simply pay a premium to belong to an appropriate Medigap plan and the Medigap insurance will cover the cost of that deductible.
Even better, Medigap plans cover more than just the cost of deductibles. Other out-of-pocket expenses such as copayments and coinsurance can also be covered by several Medigap plans.
To learn more about how trading a Medicare deductible for a Medigap premium may benefit you financially, speak with a licensed agent. Compare free quotes for Medicare Supplement Insurance plans online today.
To learn more about Medicare, read through some of the guides below.
- How Much Will You Pay for Medicare Part B?
- Understanding Medicare Part A
- Understanding Medicare Part B