Deductible

What are the Medicare Deductibles?

A deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share.

In the federal Medicare program, there are four different types of deductibles:

1. Medicare Part A Deductible: This Original Medicare deductible is based on a benefit period. The beneficiary pays the deductible for each inpatient benefit period used. If a beneficiary has three unrelated inpatient benefit periods in a year, the Part A deductible is paid three times.
2. Medicare Part B Deductible:  This Original Medicare deductible is annual. The beneficiary pays all outpatient medical costs until the deductible is met.
3. Medicare Part C Deductible: Also known as Medicare Advantage, most Part C plans do not have an annual deductible for the health plan portion of the plan, but may have deductibles for extra benefits, such as a Part D plan.
4. Medicare Part D Deductible: Most Medicare prescription drug plans have an annual deductible that must be paid before the plan starts paying its share at the pharmacy.

Deductible amounts can change every year. In addition to the deductible, most health plans have additional out-of-pocket costs, including copays and coinsurance.

In long-term care insurance, a deductible is also known as the elimination period