There are some basic types of costs you’ll want to understand to help you estimate your overall plan costs.
Premium
This is the amount you pay each month to keep your plan active.
Deductible
This is the amount you must pay for before your plan begins to pay.
Coinsurance
This is your share of the cost for benefits after you pay any deductibles. Coinsurance is usually a percentage of the total cost for care (for example, 20%).
Copayment
This is a fixed amount you may have to pay as your share of the cost for care. A copayment is a fixed amount, like $30.
Maximum out of pocket
This is the most a Medicare Advantage member will have to pay out-of-pocket for covered services each year. The amount varies by plan, but once you reach that limit, you’ll pay nothing for covered Part A and Part B services for the rest of the year.