Cost of Medicare

The Part C and D costs vary by plan and insurer. For some Part C plans, the premium can be as low as $0, while other Part C monthly premiums average $21. Part C also has an out-of-pocket maximum of $7,550. However, not every Part C plan will have an out-of-pocket limit that reaches the maximum limit. Each plan differs, and some will have a lower limit.

Part D premiums are based on income; a higher income can lead to a higher premium payment. However, the standard premium for Part D is around $30. The annual deductible as of 2021 for Part D is $445, but depending on your plan and the insurer, this deductible can be less. 

When it comes to understanding the costs of Part D, it’s important to understand the four payment stages, which are:

• Deductible stage: Until you meet the deductible of your Part D plan, you will have to pay the full price of your prescriptions. After the deductible is met, you will move on to the initial stage.
• Initial stage: In this stage, your Part D plan will begin to help you cover your prescriptions. Your plan will pay for some of the costs while a copayment or coinsurance will be left up to you to pay. For many plans, this stage will end once you and your plan have paid a combined total of $4,130. However, this specific amount can vary across plans.
• Coverage gap (donut hole): After you and your plan have reached the combined total mentioned above, you will enter the coverage gap, also known as the donut hole. In this period, you will cover 25% of the cost for your prescriptions.
• Catastrophic coverage: You will reach this specific stage when you have paid a complete total of $6,550 in out-of-pocket costs for your covered prescriptions. You will also pay much lower coinsurance and copayments during this stage.

For more information about the costs of Medicare, reach out to R&R Insurance Solutions today. We will help you compare rates for each plan.