Medicare, as well as other Medicare Heath Plans, charge premiums. Premiums are fixed monthly payments for Medicare coverage. In addition to premiums, insured individuals also share the cost for the health care services that they receive. These additional payments include:
Deductibles. Deductibles are an out-of-pocket amount that must be spent before the plan can be used during the year’s benefit period.
Copays. Copays are predetermined costs paid out-of-pocket by the insured individual at the time services are received.
Coinsurance. Coinsurance consists of a percentage of the cost of a covered service paid out-of-pocket when the service is received. Coinsurance is a share of the costs for the medical service that must be paid after the deductible is met.