When you first enroll in Medicare, navigating the costs associated with Parts A and B can feel overwhelming. With a little planning and some practical tips, you can manage these expenses more effectively, ensuring you get the healthcare you need without breaking the bank. Here's what you need to know to keep your Medicare costs under control.

Understanding What You're Paying For

Before diving into cost-saving tips, it’s essential to understand what Medicare Parts A and B cover and what expenses you might encounter.

  • Medicare Part A generally covers inpatient hospital care, skilled nursing facility care, hospice, and some home health care services. Most people don’t pay a premium for Part A if they or their spouse paid Medicare taxes for at least 10 years.
  • Medicare Part B covers outpatient care, preventive services, ambulance services, and durable medical equipment. Unlike Part A, Part B does require a premium, which varies depending on your income. Learn more about Medicare Parts A & B coverage and costs.

7 Tips for Managing Medicare Parts A & B

Tip 1: Plan for Out-of-Pocket Costs

While Medicare helps cover many healthcare costs, it doesn’t cover everything. You may still be responsible for deductibles, coinsurance, and copayments. It’s wise to budget for these out-of-pocket costs. Consider setting aside a dedicated healthcare savings fund to cover these expenses when they arise.

Tip 2: Take Advantage of Preventive Services

One of the benefits of Medicare Part B is its coverage of many preventive services at no additional cost to you. These services include screenings for diabetes, cancer, and cardiovascular disease, as well as an annual wellness visit. By staying on top of your health with these preventive measures, you can avoid more costly treatments down the road.

Tip 3: Consider a Medicare Supplement Plan

A Medicare Supplement (Medigap) plan can help cover some of the costs that Original Medicare does not, such as copayments, coinsurance, and deductibles. These plans are offered by private insurance companies and can provide additional financial protection. Be sure to compare plans carefully to find one that meets your needs and fits your budget.

Tip 4: Look into Medicare Savings Programs

If your income is limited, you may qualify for a Medicare Savings Program, which can help pay for your Part B premium and other Medicare costs. There are several types of Medicare Savings Programs, each with different income and resource limits, so it’s worth checking if you’re eligible. 

Tip 5: Be Aware of Income-Related Adjustments

Your Part B premium is based on your income, so higher earners pay more. If your income has decreased recently, due to retirement or other life changes, you might qualify for a lower premium. You can request an adjustment by contacting the Social Security Administration.

Tip 6: Utilize Telehealth Services

Medicare now covers telehealth services, which can save you money on transportation and reduce the need for in-person visits. This is especially useful for managing chronic conditions or consulting with specialists who are not in your immediate area.

Tip 7: Review Your Plan Annually

Your healthcare needs can change from year to year, so it’s essential to review your Medicare plan annually. During the Medicare Open Enrollment period, you have the opportunity to make changes to your coverage. Reviewing your plan each year ensures it still meets your needs and allows you to make adjustments that could save you money..

Take Control of Your Medicare Costs

Managing your Medicare Parts A and B costs doesn’t have to be daunting. By understanding your coverage, planning for out-of-pocket expenses, and taking advantage of available resources, you can make your Medicare experience more affordable. Don’t forget to review your options regularly and seek assistance when needed to keep your healthcare costs in check. To learn more, access the free "Medicare & You" handbook,  your official guide to Medicare.

For more guidance, consider taking a Medicare class on GetSetUp. You'll learn more about maximizing your benefits and managing costs effectively.

Reviewed By: Keith Gilbert