What You’re NOT Told About Medicare Costs

What You’re NOT Told About Medicare Costs

Understanding premiums, copays, deductibles—and what they could mean for your wallet.
“Beware of little expenses. A small leak will sink a great ship.” — Benjamin Franklin

When people think about Medicare, many assume it’s free—or at least very cheap. But the truth is, while Medicare is a vital resource, it comes with real costs that can add up quickly if you’re not prepared. From premiums and deductibles to coinsurance and income-related adjustments, it’s important to understand what you’ll actually pay out of pocket so you can plan ahead with confidence.

Let’s uncover the less obvious costs of Medicare that most people aren’t warned about.

1. The Part B Premium—And Why It Isn’t Optional

Everyone who enrolls in Medicare Part B must pay a monthly premium, and in 2025, that amount is $174.70 for most people. However, if your income is above certain thresholds, you’ll face an additional charge called IRMAA (Income-Related Monthly Adjustment Amount).

IRMAA Breakdown (2025):
If your modified adjusted gross income (MAGI) from 2023 is:

• Over $103,000 (individual) or $206,000 (joint)

• You’ll pay more for both Part B and Part D

These adjustments can raise your monthly cost by hundreds of dollars—and most people don’t see it coming until the bill arrives.

2. The Hidden Costs in Original Medicare

Even with Parts A and B, you’ll still be responsible for:

• Part A Deductible: $1,632 per benefit period

• Part B Deductible: $240 annually

• 20% Coinsurance on Part B services

• No out-of-pocket maximum with Original Medicare

That means if you face a serious illness or need extensive care, there’s no limit to what you could pay.

Example: A $50,000 outpatient treatment could leave you with $10,000+ in bills—unless you have additional coverage like a Medicare Supplement plan.

3. Prescriptions Can Be Pricey Without the Right Part D Plan

Medicare Part D is designed to help with prescription drugs—but choosing the wrong plan (or delaying enrollment) can cost you.

• Monthly premiums vary by plan

• Copays and coinsurance vary by drug tier

• Some medications may not be covered at all

• A late enrollment penalty applies if you don’t sign up when first eligible

It’s not just about having Part D—it’s about having the right plan based on the meds you actually take.

4. What Medicare Doesn’t Cover at All

This might surprise you: Original Medicare doesn’t cover everything. Here’s what you’ll have to pay for separately:

• Dental care (cleanings, fillings, dentures)

• Vision (eye exams, glasses)

• Hearing aids and exams

• Long-term care (nursing home, assisted living)

• Routine foot care and custodial home care

Without a Medicare Advantage plan or supplemental coverage, these services come entirely out-of-pocket.

5. How to Protect Yourself from Medicare Gaps

You have options—but they require planning. Consider the following to help manage your Medicare costs:

✅ Medigap (Supplement Plan): Covers most out-of-pocket costs left by Original Medicare, including the 20% coinsurance
✅ Medicare Advantage (Part C): Often includes extra benefits and has an annual out-of-pocket maximum
✅ HIP & CHAS Plans: Hospital Indemnity and Critical Illness policies pay cash directly to you to cover gaps Medicare misses
✅ Dental, Vision & Hearing Add-ons: Can be bundled or purchased separately to protect against high surprise costs

Why Work with KEyO Insurance Services

Medicare isn’t one-size-fits-all—and neither are your finances. At KEyO, our experts help you uncover hidden costs, compare your options, and build a strategy that makes Medicare work for you—not the other way around. With Trusted Care. Tailored for You., we ensure you’re not just covered—you’re confident.

Final Thought:
The biggest Medicare cost isn’t what you pay—it's what you don’t plan for. Let KEyO guide you toward smarter, safer coverage with your future in mind.