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Medicare coverage examples

Medicare plan combinations

 

You have multiple options for choosing Medicare coverage. Here are six examples of how plans can work together.
These are not actual people or costs, but they do show how each option can meet real needs.

Original Medicare only  
 

Original Medicare plus a standalone Part D plan  
 

Original Medicare plus a standalone Part D plan and Medicare Supplement plan  
 

Original Medicare plus Medicare Supplement plan  
 

Medicare Advantage plan that includes Part D prescription drug coverage  
 

Chronic Special Needs plan that includes Part D prescription drug coverage  

Medicare coverage examples


Below are some examples of the different kinds of Medicare and Medigap coverage a person may get and what costs could be when used. Note that none of the below examples represent real people, and that the costs below are estimates, intended for learning purposes only.

Georgia will be 65 next month. She has been working part-time since her husband died five years ago, but her income is limited. Georgia has heart disease, so she sees a heart specialist regularly and takes a blood-thinning medicine every day. She cannot afford a Medicare Supplement policy.

 

Georgia's Medicare benefits wish list
 

  • Health care at an affordable price
  • Access to her trusted doctors
  • Discounted prices on her prescription drugs
  • The possibility of help with her premiums and cost sharing if she qualifies for low-income assistance

Georgia's Medicare coverage choices
 

  • Original Medicare (Parts A and B)
  • Standalone Medicare Part D prescription drug plan 

Georgia's Medicare plan features
 

  • Access to the doctors and hospitals she uses now
  • Discounted prices on the drugs she takes

Georgia's premium costs

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Part D plan premium

$0

Monthly total

$174.70

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Part D plan premium

$0

Monthly total

$174.70

Georgia's monthly premium costs will be $174.70 total.

Now that we have that number, let's add in Georgia's daily blood-thinning medication. Georgia pays a $10 copay each time she fills a prescription. She fills her blood-thinning prescription once a month. Thus, Georgia's base monthly Medicare costs will be $184.70.
 

Georgia's other costs and cost-sharing

Georgia will have other out-of-pocket costs to cover when she receives different health care services and items. She will be responsible for the costs of services and items not covered by Original Medicare (Parts A and B) as well the costs defined by the cost-sharing terms of her Part D plan.
 

Georgia should apply for financial help.

Because Georgia has a limited income, she could explore financial help by seeing if she qualifies for the Extra Help program (to help with her Part D costs) and Medicaid. If she qualifies for either program, her costs could be significantly lower for both Original Medicare and Part D.
 

View prescription drug plans 

Juanita lives in Colorado and will be 65 in 3 months. She plans to retire then and spend a lot of time traveling to visiting her children and grandchildren in California. Juanita is in good health, although she takes two prescriptions daily — one to keep her bones strong and one to keep her cholesterol down. Juanita has a comfortable pension, but she wants to leave a financial legacy to her family and is therefore looking to be careful about how much she pays for Medicare.

 

Juanita's Medicare benefits wish list
 

  • Access to doctors and hospitals when she's out of state visiting her children
  • Help with paying for her prescription drugs
  • Peace of mind of knowing that she will have help paying her health care costs if they are high


Juanita's Medicare coverage choices
 

  • Original Medicare (Parts A and B)
  • Stand-alone Medicare Part D prescription drug plan
  • Medicare Supplement insurance plan (Plan G)

Juanita's Medicare and Medigap coverage features
 

  • Access to doctors and hospitals throughout the United States
  • Discounted prices on the drugs she takes
  • Help with costs not paid by Original Medicare

Juanita's premium costs

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Part D plan premium

$34.50

Monthly Medicare Supplement Plan G premium

$140

Monthly total

$349.20

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Part D plan premium

$34.50

Monthly Medicare Supplement Plan G premium

$140

Monthly total

$349.20

Juanita's monthly premium costs will be $349.20 total.

Now that we have that number, let's add Juanita's two prescription drugs. Juanita's Part D plan covers a lot of the costs of her prescriptions, but she does have to pay a $10 copay each time she fills a prescription. She refills both prescriptions together once a month. Thus, we can now say that with Juanita's monthly premiums and her monthly prescription copay, Juanita's base monthly Medicare costs will be $369.20.
 

Juanita needs to consider how to pay for her prescriptions
 

A Medicare Supplement insurance plan covers most of Juanita's out-of-pocket costs with Original Medicare, but Juanita's prescription drug costs are not covered by her Medicare Supplement insurance plan. She will have to look at the cost-sharing terms for her Part D plan to determine additional monthly out-of-pocket costs.

David just turned 65 and is about to retire from work. He doesn't plan to keep working past age 65 and does not have any retiree coverage. He plans to get Medicare at age 65, during his Initial Enrollment Period.

 

David in good shape and generally healthy. He takes a daily prescription drug to keep his high blood pressure in check. David takes good care of himself. He is careful to live within his budget.
 

David's Medicare benefits wish list
 

  • Access to a full range of health care services, including preventive care
  • Coverage that provides a safety net in case of a serious illness
  • Access to specialists if he needs them—he's comfortable with sticking to choices in a plan's network
  • Access to prescription drug coverage in case he needs additional medications in the future


David's Medicare coverage choice

A Medicare Advantage plan with built‑in prescription drug coverage
 

David's Medicare plan features
 

  • Preventive care
  • Fitness program at no additional cost
  • Built-in prescription drug coverage
  • Network of local doctors and hospitals
  • Out-of-pocket maximum of $4,900 for the year

David's premium costs

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Advantage plan premium

$0

Monthly total

$174.70

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Advantage plan premium

$0

Monthly total

$174.70

David's monthly premium costs will be $174.70 total.

Now that we have that number, let's add in David's blood pressure medication. With his Medicare Advantage plan, David pays a $15 copay every time he fills a prescription. Thus, we can now say that with David's monthly premiums and his monthly prescription, David's base monthly Medicare costs will be $189.70.
 

David's other costs and cost-sharing

David will have other costs as well as he receives different health care services throughout the plan year. His out-of-pocket costs may include copays, coinsurance and deductibles. His total spending will vary depending on the specific cost-sharing terms of his plan, the health care services he uses, the prescriptions he fills, and whether the services or items were obtained in-network or out-of-network. Because David's plan has an out-of-pocket maximum of $4,900 for the year, once his out-of-pocket costs reach that number, his Medicare Advantage plan will be responsible for all the costs for the remainder of the plan year.

Sammy is 65 and decided to enroll in a Medicare Advantage Private-Fee-For-Service (PFFS) plan because he wanted to see any provider as well as see specialists without needing a referral. Sammy also has high blood pressure and takes a daily pill to help keep it regulated. He is generally healthy and doesn't take any other prescriptions, but Sammy does like to be prepared.

 

Sammy's Medicare benefits wish list
 

  • Flexibility to see the providers he wants
  • Access to specialists without referrals
  • Prescription drug coverage for his blood pressure, and in case he needs anything in the future


Sammy's Medicare coverage choice

A Medicare Advantage Private-Fee-for-Service plan with no network limitation and a low-cost stand-alone Part D plan.
 

Sammy's Medicare coverage features
 

  • Preventive care
  • Fitness program at no additional cost
  • Prescription drug coverage
  • National access to doctors and hospitals
  • Out-of-pocket maximum of $4,900 for the year

Sammy's premium costs

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Advantage PFFS plan premium

$20

Monthly Part D plan premium

$15

Monthly total

$209.70

Item Amount

Monthly Part B premium (2024)

$174.70

Monthly Medicare Advantage PFFS plan premium

$20

Monthly Part D plan premium

$15

Monthly total

$209.70

Sammy's monthly premium costs will be $209.70 total.

Now that we have that number, let's add in Sammy's blood pressure medication. With his stand-alone Part D plan, Sammy pays a $5 copay every time he fills a prescription. Thus, we can now say that with Sammy's monthly premiums and his monthly prescription, his base monthly Medicare costs will be $214.70.
 

Sammy's other costs and cost-sharing

Sammy will have other costs as well as he receives different health care services throughout the plan year or if he needs to purchase additional prescription drugs. His out-of-pocket costs may include copays, coinsurance and deductibles. His total spending will vary depending on the specific cost-sharing terms of his plan, the health care services he uses and the prescriptions he fills. And, because Sammy's plan has an out-of-pocket maximum of $4,900 for the year, once his out-of-pocket costs reach that number, his Medicare Advantage plan will be responsible for all the costs for covered services for the remainder of the plan year. Sammy's Part D plan doesn't have an out-of-pocket maximum, and what he pays will also depend on the Part D coverage stage he is in.

Leroy is about to turn 65. He has had serious health problems for years. He suffers from diabetes and high blood pressure, and his doctor has told him he needs to lose a considerable amount of weight. Leroy takes insulin and blood pressure medication every day. He has had trouble in the past with interactions of the drugs he is taking.

 

Leroy's Medicare benefits wish list
 

  • Expert help with managing his health problems
  • Help with improving his diet, exercise and weight management
  • Discounted prices on prescription drugs


Leroy's Medicare coverage choice
 

Medicare Advantage Special Needs plan (SNP) for people with diabetes, with built-in prescription drug coverage

Leroy's Medicare plan features
 

  • Access to a care manager who will create a plan for coordinating his care
  • Help with finding out if he qualifies for financial assistance with Medicare costs
  • Discounted prices on the drugs he takes
  • Help with adopting a healthier lifestyle 

Leroy's premium costs

Item Amount

Monthly Part B premium (2025)

$185

Monthly Medicare Advantage Special Needs plan premium

$18

Monthly total

$203

Item Amount

Monthly Part B premium (2025)

$185

Monthly Medicare Advantage Special Needs plan premium

$18

Monthly total

$203

Leroy's other costs and cost-sharing
 

Leroy pays out-of-pocket for services and items he receives during the year. How much he pays is determined by the cost-sharing terms as determined by his plan. His total spending will also depend on the specific health care services he uses and the medications he takes.
 

Leroy should see if he can also qualify for Medicaid. Because Leroy has been dealing with serious health problems for years, it's likely that his health care costs are high. Leroy should see if he qualifies for Medicaid in his state to see if he may get additional health care coverage and financial help that way.


View Special Needs plans available in your area 

Coverage and costs for Original Medicare (Part A and Part B) only

 

Meet Ellen

Ellen is about to turn 65 and retire. She doesn’t take any prescription drugs right now, and is in very good health. Ellen also likes to travel, going to different U.S. National Parks every summer and fall. She is retiring from her position as a director at a global software company with very strong savings and annual pension. Ellen is not concerned about out-of-pocket health care costs and doesn’t anticipate needing more than medical and hospital insurance.

 

Ellen is choosing Original Medicare, which provides:

 

  • Access to doctors and hospitals throughout the United States
  • Basic medical and hospital insurance

 

Ellen will have a monthly Part B premium of $202.90. She will also be responsible for any cost sharing for covered care, plus all costs for health items and services not covered by Medicare Part A or Part B.

 

Because Ellen did not add prescription drug coverage, she will be responsible for all her prescription drug costs. If she adds a Part D plan later, she may have to pay Part D late penalties because she will not have had creditable coverage.

 

Examples are for illustration only. Benefits and costs vary by plan and area. 

Coverage and costs for Original Medicare (Part A and/or Part B) plus a standalone Part D plan

 

Meet Georgia

Georgia will be 65 next month. She has been working part-time since her husband died 5 years ago. Georgia has a family history of heart disease, so she exercises regularly, makes a point of eating healthy foods, and keeps in touch with her primary care physician.

 

Georgia wants health care at an affordable price, access to her trusted doctors, and predictable out-of-pocket costs on her prescription drugs.

 

Georgia is choosing Original Medicare plus a standalone Part D plan, so she will have:

 

  • Access to the doctors and hospitals she uses now
  • Predictable out-of-pocket costs on the drugs she takes

 

Her monthly costs will be $202.90 for her Part B premium and $42.98 for her Part D premium, for a total of $245.88.

 

Georgia will have other out-of-pocket costs to cover when she receives different health care services and items. She will be responsible for any cost sharing for Medicare Part A and Part B covered services, and for the cost sharing defined by her Part D plan. She will also be responsible for the costs of services and items not covered by Medicare Part A and Part B.

 

Because Georgia has a limited income, she could explore financial help by seeing if she qualifies for the Extra Help program for Part D costs, and for Medicaid. If she qualifies for either program, her costs could be significantly lower.

 

Examples are for illustration only. Benefits and costs vary by plan and area.

Coverage and costs for Original Medicare (Part A and/or Part B) plus a standalone Part D plan and a Medicare Supplement plan

 

Meet Juanita

 

Juanita will be 65 in 3 months and plans to retire at that time. She plans on spending time traveling from her home in Colorado to visit family in California.

 

Juanita is in good health. She takes two prescriptions — one to keep her bones strong and another to control her cholesterol. She has a comfortable pension but wants to leave a financial legacy for her family so she is careful about what she spends on health care.

 

She wants access to doctors and hospitals when she’s in California visiting her children, help paying for her prescription drugs, and help paying if her health care costs are high.

 

Juanita is choosing Original Medicare plus a standalone Part D plan and a Medicare Supplement (Medigap) plan. Together, these plans provide:

 

  • Predictable out-of-pocket costs on the drugs she takes
  • Access to doctors and hospitals throughout the United States
  • Help with costs not paid by Original Medicare


Her monthly costs will be $202.90 for her Part B premium, $57.48 for her Part D premium, and $167 for her Medigap premium, a total of $427.38.

 

A Medicare Supplement insurance plan covers most of Juanita’s out-of-pocket costs with Original Medicare, but Medicare Supplement plans do not cover prescription drugs. Her additional out-of-pocket costs may include cost sharing for her Part D plan.

 

Examples are for illustration only. Benefits and costs vary by plan and area.

Coverage and costs for Original Medicare (Part A and Part B) plus a Medicare Supplement Insurance (Medigap) plan


Meet Matt

 

Matt is about to turn 65 and lives in Texas. He is an Army veteran with Veterans Administration (VA) benefits. Matt enjoys traveling each year to see his four grandchildren in Arizona and Wyoming. He is retired with good savings but wants to make sure he leaves something behind for each of his grandchildren. Matt is in good health and takes only one prescription daily, for lowering his cholesterol. Matt gets this prescription and any others he needs through the VA.

 

He wants access to doctors and hospitals nationwide, and peace of mind knowing that he will have help paying for health care costs if they are high.

 

Matt is choosing Original Medicare plus a Medicare Supplement (Medigap) plan, which includes:

 

  • Access to doctors and hospitals throughout the United States
  • Help with costs not paid by Original Medicare
  • A yearly out-of-pocket limit of $4,000 before 75% of the benefit is paid at 100%


His monthly costs will be $202.90 for his Part B premium and $113 for his Medigap premium, a total of $315.90.

 

Matt’s Medicare Supplement insurance plan will help with the costs of his Original Medicare covered services. His out-of-pocket costs will vary based on the services he receives, and may be lower once he reaches the annual out-of-pocket limit for his Medicare Supplement insurance plan. Matt will also be responsible for the costs of services and items not covered by either plan. His VA costs will be separate from his Medicare costs.

 

Examples are for illustration only. Benefits and costs vary by plan and area.

Coverage and costs for a Medicare Advantage (Part C) plan with included Part D prescription drug coverage (MAPD)

 

Meet David

 

David just turned 65 and is retiring. He doesn’t have retiree coverage and is in his Medicare Initial Enrollment Period (IEP). David takes good care of himself and is generally healthy. He takes a daily prescription drug for his high blood pressure. He is careful to live within his budget.

 

David wants coverage for preventive care and other health care services, access to specialists, prescription drug coverage in case he needs additional medications, and a safety net in case of a serious illness.

 

David is choosing a Medicare Advantage plan with Part D prescription drug coverage that includes preventive care, access to a network of local doctors and hospitals, and a fitness program. This plan has an out-of-pocket maximum of $4,900 per year.

 

His monthly costs will be $202.90 for his Part B premium. He is eligible for a Medicare Advantage plan with a $0 premium, so his total monthly premium will be $202.90.

 

David may have out-of-pocket costs like copays, coinsurance and deductibles. His total spending will vary depending on the health care services he uses, the prescriptions he fills, the cost-sharing terms of his plan, and whether his providers are in-network or out-of-network. Once David’s out-of-pocket costs for Medicare covered services reach $4,900, his Medicare Advantage plan will be responsible for the rest. He will still be responsible for costs not covered by Medicare or the plan.

 

Examples are for illustration only. Benefits and costs vary by plan and area.

Coverage and costs for a Chronic Special Needs plan (C-SNP) for people with diabetes, with included prescription drug coverage

 

Meet Leroy

 

Leroy is about to turn 65. He has had serious health problems for years. He suffers from diabetes and high blood pressure, and his primary care provider has told him he needs to lose a considerable amount of weight. Leroy takes insulin and blood pressure medication every day. He has had trouble in the past with interactions with the drugs he is taking.

 

Leroy wants prescription drug coverage, expert help to manage his health problems, and help to improve his diet, exercise and weight management.

 

Leroy is choosing a Chronic Special Needs plan (C-SNP) that includes help with adopting a healthier lifestyle, access to a care manager who can create a plan for coordinating his care, and predictable out-of-pocket costs on the drugs he takes.

 

A Chronic Special Needs plan is a Medicare Advantage plan for people living with specific chronic or disabling long-term health conditions.

 

His monthly costs will be $202.90 for his Part B premium, $3.15 for his C-SNP premium and $25 for his insulin prescription copay, a total of $231.05 per month.

 

Leroy pays out-of-pocket for services and items he receives during the year. How much he pays is determined by the cost-sharing terms of his plan. His total spending will also depend on the health care services he uses and the medications he takes.

 

Leroy has been dealing with serious health problems for a long time, and his health care costs are high for his income. He may want to see if he qualifies for additional health care coverage and financial help from Medicaid in his state.

 

Examples are for illustration only. Benefits and costs vary by plan and area.

Read next: Medicare benefits

Learn more about Medicare benefits  

Read next: Medicare benefits

Learn more about Medicare benefits  

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