Alert
Close

Watch the NASCAR race on Sunday at Martinsville Speedway. Join the Drive to End Hunger!

AARP's Medicare Question and Answer Tool

How Much Medicare Costs

 

En español | Medicare covers a lot of your health care costs, but not all. There are also premiums and other out-of-pocket costs to consider. AARP’s Medicare Question and Answer Tool is a starting point to guide you through some of the more common questions about costs and options for people with limited incomes.

 

 

General

  • Q. What does Medicare generally cost?

    A. Generally, how much you pay for Medicare depends on: which Medicare plan you choose; how often you go to the doctor or hospital; whether you have other health insurance; and whether you qualify for help with Medicare costs. — To view the complete answer, select the question above.

  • Q. Does Medicare cover all of my health care costs?

    A. Medicare does not cover all of your health care costs. Depending on which plan you choose, you might have to share in the cost of your care by paying premiums, deductibles, copayments and coinsurance. — To view the complete answer, select the question above.

  • Q. When do the Medicare premiums and coinsurance rates change?

    A. New Medicare premium and coinsurance rates are announced each fall and become effective in January. — To view the complete answer, select the question above.

  • Q. What is a premium?

    A. A premium is the monthly amount you pay to Medicare or a private insurance plan for your health care and your prescription drug coverage. — To view the complete answer, select the question above.

  • Q. What is a deductible?

    A. A deductible is the amount you must pay for health care or prescriptions before Medicare begins to pay its share. — To view the complete answer, select the question above.

  • Q. What is coinsurance?

    A. Coinsurance is the amount you may be required to pay for services after you pay any deductibles. This could be a percentage (such as 20 percent) of the Medicare-approved amount or a fixed dollar amount. — To view the complete answer, select the question above.

  • Q. What is a copayment?

    A. A copayment is usually a set amount you pay for each medical service, such as a doctor’s visit, or prescription. — To view the complete answer, select the question above.

Part A Hospital Insurance

Part B Medical Insurance

  • Q. What is the premium for Medicare Part B?

    A. The standard Part B premium is $104.90 in 2014. Part B helps pay for doctors' services and outpatient care. It also covers other medical services, such as physical and occupational therapy, and some home health care. — To view the complete answer, select the question above.

  • Q. I have Original Medicare. What are the costs for Part B?

    A. The Part B costs for Original Medicare are as follows: Premium - $104.90 per month (in 2014); Deductible - $147 per year (in 2014); and Coinsurance - 20 percent for most services Medicare Part B covers. — To view the complete answer, select the question above.

Part D Prescription Drug Coverage

Premiums

Penalties

  • Q. How much is the late enrollment penalty for Part A?

    A. If you aren’t eligible for premium-free Part A, and you don’t buy it when you’re first eligible, your monthly premium may go up 10 percent. — To view the complete answer, select the question above.

  • Q. How much is the late enrollment penalty for Part B?

    A. Generally, a 10 percent premium penalty will be added to the Part B monthly premium for each 12-month period you could have enrolled but did not. — To view the complete answer, select the question above.

  • Q. How much is the late enrollment penalty for Part D?

    A. Generally, a penalty of 1 percent per month will be added to the Part D monthly premium for each month you could have enrolled but did not enroll or have coverage at least as good as Medicare’s, also known as “creditable coverage.” — To view the complete answer, select the question above.

Help for People with Limited Incomes

Bills and Claims

 

Search Medicare

Enter a keyword below to find answers to your Medicare questions.

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Grandson (8-9) whispering to grandfather, close-up

Members can save 20% on hearing aids with the AARP® Hearing Care Program provided by HearUSA.

AARP/Walgreens Wellness Bus Stops in Clarksdale, MS

Members can get exclusive points offers from Walgreens and Duane Reade.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.