Saving on Medicare Premiums: Understanding Costs, Available Options, and Eligibility Requirements
Saving money on Medicare can be a concern for many individuals, especially as healthcare costs continue to rise. Here are some practical steps you can take to reduce your Medicare-related expenses:
1. Shop around during Open Enrollment for Medicare Advantage and Part D prescription drug plans to find options with lower premiums and cost-sharing that fit your needs best.
2. Consider enrolling in a Medigap plan, a supplemental Medicare insurance that helps save on original Medicare costs.
3. Take full advantage of Medicare-covered preventive services, such as annual wellness visits and screenings, which are provided at no cost and can help you maintain better health to avoid costly treatments later.
4. Maintain healthy habits with regular checkups to reduce the risk of expensive medical issues.
5. Evaluate plans carefully beyond just premiums: consider deductibles, copays, and annual out-of-pocket maximums to find a plan with balance suitable for your financial and health situation.
6. Check the provider network of Medicare Advantage plans to avoid extra costs from out-of-network providers and to maintain care continuity with your preferred doctors.
7. Manage your income strategically, as Medicare Part B and Part D premiums can include income-related surcharges if your income exceeds certain thresholds. Keeping income below these levels can lower premiums substantially.
8. Explore Medicare Savings Programs (MSPs), state-run assistance programs that help pay Part A and Part B premiums, deductibles, and copays if your income and assets fall below certain limits.
9. Look into Medicare Advantage plans with Part B premium givebacks, which can reduce or cover your Part B premiums.
10. People can save on prescription drug costs by considering generic drugs as an alternative to brand-name drugs. If an individual needs a brand-name drug, they might consider buying a larger supply of any long-term medications.
11. For more resources on Medicare, visit the Medicare hub. The U.S. government funds the State Health Insurance Assistance Program (SHIP), providing free counseling on any aspect of Medicare. You can find your local SHIP office using this online tool.
12. Mail-order pharmacies can save money on rent and staffing costs and pass any savings to their customers. Before using a mail-order pharmacy, ensure its legitimacy by checking with the Food and Drug Administration (FDA) in your state.
13. Pharmaceutical manufacturer patient assistance programs (PAPs) help people on a low income pay for out-of-pocket drug costs. A person enrolled in Medicare (Part D) may qualify for PAP assistance.
14. In 2025, the standard monthly premium for Part A ranges from $285 to $518, the deductible is $1,676, and coinsurance ranges from $0 to $838. The Part B premium is $185, and the deductible is $257 per year.
15. Private companies administer 10 different types of Medigap plans. Medicare Advantage (Part C) premiums vary depending on the plan. Premiums are the monthly payments individuals make for Medicare coverage.
16. There are four Medicare savings programs that can help pay some of Original Medicare premiums, copays, deductibles, and coinsurance. If you find yourself struggling with Medicare costs, these programs may be worth exploring.
By combining these strategies—shopping wisely, leveraging supplemental coverage, maintaining health, managing income, and seeking assistance programs—you can significantly reduce your Medicare-related expenses.
- Shopping around during Open Enrollment for Medicare Advantage and Part D prescription drug plans can help find options with lower premiums, while evaluating plans carefully beyond just premiums can aid in finding a plan with an optimal balance of costs and coverage suitable for personal-finance and health situations.
- Enrolling in a Medigap plan, a supplemental Medicare insurance, can help save on original Medicare costs, and Medicare Savings Programs (MSPs) may be worth exploring to assist with premiums and other expenses if income and assets fall below certain limits.
- Taking full advantage of Medicare-covered preventive services, such as annual wellness visits and screenings, can help maintain better health-and-wellness, potentially saving on costly treatments later.
- To avoid extra costs, ensure Medicare Advantage plan provider networks include preferred doctors, and when possible, consider generic drugs, mail-order pharmacies, and pharmaceutical manufacturer patient assistance programs to reduce prescription drug costs.
- In addition, maintaining healthy habits with regular checkups and managing income strategically—including keeping income below certain Medicare Part B and Part D premium thresholds to avoid income-related surcharges—can contribute to reduced Medicare-related expenses.
