Does Medicare Have a Deductible?
Medicare does indeed have deductibles. Medicare deductibles are standardized for Original Medicare and on a plan-by-plan basis for Part C and Part D. Learn about the Medicare deductibles for 2023.
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 Medicare deductibles for Part C and Part D will vary from one plan to the next. Read on to learn about Medicare deductibles for 2023.
What is the Medicare Part A Deductible for 2023?
The Medicare Part A deductible is $1,600 per benefit period in 2023.
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 Medicare 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 Medicare Part A deductible include:
- Hospital care
- Skilled nursing facility care
- Nursing home care
- Hospice care
- Home health services
Once the Medicare Part A deductible is met, Part A recipients will typically be responsible for copayments and coinsurance costs.
What is the Medicare Part B Deductible for 2023?
The Medicare Part B deductible is far less than that of Part A. In 2023, Part B requires an annual deductible of $226. 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 for 2023
Unlike Part A and Part B, the remaining two parts of Medicare do not come with standardized Medicare 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.
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