Medicare Costs & Budgeting for Healthcare
Medicare isn’t free — but with the right plan, it can be predictable and affordable.
I’m Jake McGeoy, your local Medicare agent, and I’ll break down what you can expect to pay so you can budget confidently.
1. Monthly Premiums
Your premium is the amount you pay every month to keep your coverage active.
Part A: Most people pay $0 (you already paid for it through payroll taxes).
Part B: Standard premium in 2025 is about $174.70/month, though higher incomes may pay more.
Part C (Medicare Advantage): Premiums vary — some as low as $0.
Part D (Prescription Drug Plans): Average is $0–$60/month depending on plan.
Jake’s Tip: Even “$0 premium” plans can still have copays and other costs, so look at the whole picture.
2. Deductibles
The amount you pay out of pocket before Medicare or your plan starts paying.
Part A: $1,632 per benefit period (hospital coverage)
Part B: $240 annual deductible
Part D: Up to $545 (varies by plan and drug tier)
3. Copayments & Coinsurance
Copayment (Copay): A set amount you pay for a service (e.g., $20 for a doctor visit).
Coinsurance: A percentage of the bill you pay (e.g., 20% for Part B services).
Example: If your outpatient surgery costs $1,000 and your coinsurance is 20%, you’ll pay $200.
4. Out-of-Pocket Maximum
Original Medicare doesn’t have an annual cap — but Medicare Advantage plans do.
In 2025, the maximum is $8,850 for in-network care (plans may set lower limits).
5. Extra Costs to Consider
Dental, vision, and hearing (not covered by Original Medicare)
Long-term care (not covered)
Travel or care outside the U.S. (limited coverage)
Budgeting for Medicare
I help my clients:
Compare total annual costs — not just premiums
Plan for deductibles and copays
Choose plans with cost protections for their needs
Avoid surprise bills by making sure providers are in-network
Get a clear picture before you choose.
Call Jake McGeoy at 443-797-3923 and I’ll help you compare your options, run the numbers, and make sure your Medicare fits your budget.