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Many Medicare beneficiaries face significant out-of-pocket expenses to meet their health care needs. In 2013, people with traditional Medicare spent an average of $5,680 on insurance premiums and medical services. One in 10 people on Medicare spent at least $10,852. Health care expenses can create a significant financial burden for many Medicare beneficiaries, with half the people in fee-for-service Medicare spending at least 17 percent of their income on health care.