Key Takeaways
- Medicare deductibles are reset each year and the dollar amount may be subject to change.
- Both Medicare Parts A and B have deductibles that must be met before Medicare starts paying.
- Medicare Advantage, Medigap and Part D plans are all sold by private insurance companies that set their own deductibles.
Deductibles for Original Medicare
Medicare premiums, deductibles and coinsurance rates for Original Medicare are adjusted each year. Original Medicare includes Medicare Part A hospital insurance and Part B medical insurance. Each has different deductibles.
You can find out if you’ve met your Medicare Part A or Part B deductible for the year at MyMedicare.gov.
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Medicare Part A Deductible in 2023
Medicare Part A covers certain hospitalization costs, including inpatient care in a hospital, skilled nursing facility care, hospice and home health care. It does not cover long-term custodial care.
For 2023, the Medicare Part A deductible is $1,600 for each benefit period. If you re-enter the hospital or skilled nursing facility any time after your benefit period ends, you will have to pay the first $1,600 again as a new deductible.
What Is a Benefit Period?
This is how Medicare measures your use of inpatient hospital care or services in a skilled nursing facility. The benefit period begins the day you enter the hospital or facility and ends after you have not needed inpatient care for 60 days in a row.
Medicare Part B Deductible in 2023
For 2023, your Medicare Part B deductible is $226. That’s a $7 decrease from 2022.
Unlike Medicare Part A, there is no benefit period tied to Medicare Part B.
After meeting the deductible, you’ll usually have to pay 20% of the Medicare-approved costs for most doctor services, outpatient care and durable medical equipment — things such as wheelchairs or walkers your doctor may order for you.
Learn more about how to determine when you've met your Medicare deductible from Bob Glaze, a licensed insurance agent.
Deductibles for Drug Coverage and Medicare Advantage in 2023
Deductibles for Medicare Part C, also known as Medicare Advantage plans, and Medicare Part D prescription drug coverage varies based on the plan you purchase. Both Medicare Advantage and Part D plans are sold by private insurers that have contracts with the Medicare program.
Medicare Advantage plans may offer coverage that absorb some of your out-of-pocket costs. Though Medicare Advantage deductibles may vary, all plans must set a limit on your maximum out-of-pocket (MOOP) expenses. This is a total spread across your deductibles, coinsurance and copayments.
For 2022, the MOOP for Medicare Advantage plans is $7,550 for in-network care. It can be higher for out-of-network care or services. But once you hit your MOOP for the year, the plan has to cover 100% of all further costs.
Some Medicare Part D prescription drug plans don’t have a deductible. Those that do may not have a deductible of more than $505 in 2023.
Have you selected your 2023 Medicare plan?
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Using Medigap to Pay Medicare Deductibles
Medigap, also known as Medicare Supplement plans, can help pay some of your out-of-pocket costs, including your Medicare Part A deductibles.
These plans are sold through private insurers. There are eight standardized plans across 47 states and the District of Columbia. There are different standardized plans for Minnesota, Massachusetts and Wisconsin.
Each plan has a letter for a name. Some of these plans may cover all or a portion of your Part A deductible.
Medigap Plan Coverage of Part A Deductibles
Medigap Plans C and F were the only two to cover the deductible for Medicare Part B. However, Plans C and F are available only to people who became eligible for Medicare before Jan. 1, 2020.
Frequently Asked Questions About Medicare Deductibles
Does Medicare have a deductible?
Yes, you have to pay a deductible if you have Medicare. You will have separate deductibles to meet for Part A, which covers hospital stays, and Part B, which covers outpatient care and treatments.
How do Medicare deductibles work?
A deductible is the amount of money that you have to pay out-of-pocket before Medicare begins paying for your health costs. For example, if you received outpatient care or services covered by Part B, you would then pay the first $226 to meet your deductible before Medicare would begin covering the remaining cost.
Last Modified: September 30, 2022
9 Cited Research Articles
- U.S. Centers for Medicare & Medicaid Services. (2022, September 27). 2023 Medicare Parts A and B Premiums and Deductibles 2023 Medicare Part D Income-Related Monthly Adjustment Amounts. Retrieved from //www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly
- U.S. Centers for Medicare & Medicaid Services. (2022). Yearly Deductible for Drug Plans. Retrieved from //www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/yearly-deductible-for-drug-plans
- Tyko, K. (2019, November 9). Medicare Part B Premium 2020: Rates and Deductibles Rising 7% for Outpatient Care. Retrieved from //www.usatoday.com/story/money/2019/11/09/medicare-part-b-2020-deductibles-premiums-increasing/2541901001/
- U.S. Centers for Medicare & Medicaid Services. (2019, November 22). Chapter 3 - Deductibles, Coinsurance Amounts, and Payment Limitations. Retrieved from //www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/downloads/ge101c03.pdf
- U.S. Centers for Medicare & Medicaid Services. (2019, November 8). 2020 Medicare Parts A & B Premiums and Deductibles. Retrieved from //www.cms.gov/newsroom/fact-sheets/2020-medicare-parts-b-premiums-and-deductibles
- Livingston, S. (2019, November 8). Drug Spending Drives Higher 2020 Medicare Part B Premiums, Deductibles. Retrieved from //www.modernhealthcare.com/medicare/drug-spending-drives-higher-2020-medicare-part-b-premiums-deductibles
- U.S. Centers for Medicare & Medicaid Services. (n.d.). Medicare Costs at a Glance. Retrieved from //www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
- U.S. Centers for Medicare & Medicaid Services. (n.d.). How to compare Medigap policies. Retrieved from //www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies
- Humana. (n.d.). Deductibles for Medicare Part A and Part B. Retrieved from //www.humana.com/medicare/part-a-b-deductibles-review