When Americans become eligible for Medicare at 65, they're frequently unprepared for one big surprise: Their out-of-pocket health costs can be enormous.
In 2023, the annual Part B premium and deductible (for doctor’s visits and home health care) totals $2,205, and the Part D prescription drug premium can run up to $505. Then there are co-insurance costs and medication co-pays before Medicare’s catastrophic coverage kicks in. A hospital stay has a $1,600 deductible. And this year’s out-of-pocket maximum for private insurers’ Medicare Advantage plans can hit $8,300 to see in-network doctors.
