Medicare Myth: Medicare is Free for Everyone

Debunking the Myth of Free Medicare

Medicare isn’t FREE.  It has costs that you need to know about.  Let’s look at the different parts of Medicare and their costs.

Medicare has four main parts:  A, B, C, and D.  Each part has its own costs.  You might pay premiums, deductibles, copayments, or coinsurance.  It’s important to check the details of your coverage regularly because these costs can change every year.

Sometimes, people think Medicare is free because they paid into it while working.  But that only covers part of the cost.  The rest comes from your pocket when you use Medicare.

PART A | Premiums, Deductibles, and Copayments

Most people don’t pay a premium for Part A because they or their spouse have paid Medicare taxes for at least 10 years.  But if you didn’t pay enough taxes, you’ll have a premium for Part A.

In 2024, the Part A premium could be up to $505 per month.  There are also hefty deductibles and daily copayments for hospital stays and skilled nursing facilities.

PART B | Premiums & Deductible

Almost everyone pays a monthly premium for Part B.  In 2024, the standard premium is $174.70 per month.  This amount can be higher if your income is above a certain level.

Part B also has a yearly deductible ─ in 2024, it’s $240.  After you pay this, those on Original Medicare are responsible for 20% of the Medicare-approved amount for most doctor services.

Medigap Supplement Premiums

Medigap is extra insurance from a private company that helps pay some of the costs that Medicare doesn’t cover.  Medigap plans have monthly premiums, ranging from about $50 to over $300, depending on the plan and where you live. These premiums are on top of your Part B premium.

PART C Out-of-Pocket Costs | Deductibles, Copayments and Coinsurance

Part C, or Medicare Advantage, is an all-in-one alternative to Original Medicare.  These plans often have lower premiums than separately paying for Parts A, B, and D.  In fact, many are $-ZERO premium plans.  But you still have out-of-pocket costs.

You’ll have copayments or coinsurance for doctor visits, hospital stays, and procedures.  Your out-of-pocket costs are usually limited to a yearly maximum.  After you reach this limit, you pay nothing further for covered services for the remainder of the year.

Part D | Premiums, Deductibles and Copayments

Part D helps cover prescription drugs. You pay a monthly premium for this coverage. The amount varies by plan, but the average monthly premium is around $50.  Some people with higher incomes pay an extra amount for Part D on top of their plan premium.

Most Part D plans have an annual deductible, which in 2025 can be up to $590.  After you pay the deductible, you’ll have copayments or coinsurance for your drugs.

Final Thoughts

Like any insurance program, Medicare involves complexities regarding coverage options and costs.  I’m here to come alongside you and help you make informed choices that align with your healthcare needs, financial well-being, and long-term peace of mind.

Medicare Video Guy | 855-360-5263