The cost of Medicare varies depending on the specific parts of the program and the services utilized. Medicare Part A, which covers inpatient hospital care, is generally premium-free for most people who have paid Medicare taxes for at least 10 years. However, there are costs associated with Part A, such as a deductible for each benefit period and coinsurance for extended hospital stays. Medicare Part B requires a monthly premium, which is income-dependent, and includes an annual deductible. After the deductible is met, beneficiaries typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment.

Medicare Part C (Medicare Advantage) plans are offered by private insurers and vary in cost. These plans typically require beneficiaries to pay the Part B premium plus an additional premium for the Advantage plan itself, though some Advantage plans offer zero-premium options. Out-of-pocket costs in Medicare Advantage plans can include deductibles, copayments, and coinsurance, but they often have an annual out-of-pocket maximum, providing some financial protection. Medicare Part D, which covers prescription drugs, also requires a separate monthly premium, an annual deductible, and copayments or coinsurance for medications, with costs varying based on the specific plan and drugs covered. Understanding these costs is crucial for beneficiaries to budget effectively and explore supplemental insurance options to manage out-of-pocket expenses.