Deductible Responsibility With Medicare

According to the Kaiser Family Foundation, Medicare had more than 47 million beneficiaries in 2010. The majority of Medicare users are senior citizens age 65 or older, but Medicare also covers some people younger than 65 who have disabilities or serious health conditions. Medicare comes in four parts, each with its own deductible. This is the amount the user must pay each year out of pocket before insurance begins to cover medical services.

Part A

• Part A Medicare mainly covers hospital services. It has benefits for inpatient hospitalizations, as well as for home health services and hospice care. Many people receive Part A premium-free, although there are a number of copayments for hospital services. Part A also has an annual deductible. The deductible can change each year. In 2011, the Part A deductible was $1,132, up $32 from the 2010 deductible of $1,100.

Part B

• Part B features benefits for outpatient hospital services and preventive care, such as health screenings, vaccinations, wellness programs and physical exams. Part B always has a monthly premium payment, as well as copays and coinsurance. In 2011, the Part B deductible was $162, up from $155 in 2010. If you have a very low income, you may be able to get help from your state's Medicare Savings Programs in meeting the Part A and Part B deductibles. Medicare supplements, also called Medigap, also offer help paying the Part A and B deductibles.

Medicare Advantage

• Part C Medicare, commonly called Medicare Advantage, allows beneficiaries to buy their Part A and Part B benefits from private insurance companies instead of from the federal government. Companies that sell Medicare Advantage must offer all Part A and Part B services, except for hospice care, which is always covered by the government. They also usually include extra benefits such as hearing, vision or dental. These companies can set their own rules regarding premiums and annual deductibles for Medicare Advantage, however. Your Part C deductible will vary depending on where you live, which company you buy it from and the type of plan you purchase.

Part D

• Part D Medicare offers coverage only for prescription drugs. Part D also is sold by private insurance companies. Part D out-of-pocket costs can be confusing, because they include an initial deductible and an initial coverage limit. In 2011, the annual deductible for Part D was $310. However, Part D also has an initial coverage limit, after which you pay all costs yourself until you reach the catastrophic coverage threshold. This is called the donut hole. In 2011, reforms meant to eventually close the hole began, but they will not result in finally closing the hole completely until 2020.