Premiums, copays and other Medicare costs

It’s the amount you pay each month for your coverage.

Plan premiums will vary depending on what plan you’re in. Be sure you know your plan’s monthly premium. You’ll pay it in addition to your Medicare Part B premium.

It’s the amount you may have to pay out of pocket before your plan starts to pay its share of covered costs. Your deductible resets at the start of each plan year.

Comparing Medicare plans? Be sure to include the deductible, premium, copays and coinsurance in the yearly cost.

It’s an amount you may have to pay out of pocket for covered services or prescription drugs:

• A copay is a fixed dollar amount, such as $20 for a doctor visit.
• Coinsurance is a percent of the cost, such as 10% for a covered prescription drug. (To find out how much you’ll pay, multiply the percent times the cost. For example, if your coinsurance is 10% and a covered drug costs $100, you’ll pay 10% x $100, or $10.)

When choosing a plan, it’s important to know if your share of covered costs will be a copay or coinsurance.

IRMAA stands for Income-Related Monthly Adjustment Amount. It’s an extra amount some people have to pay for their Medicare Part B and Part D coverage.

Here are some important points about the IRMAA:

• You’ll only have to pay an IRMAA if your income is above a certain amount.
• If you have to pay an IRMAA, you’ll get a letter from the Social Security Administration (SSA).
• If you don’t pay your IRMAA, you may lose your Part B or Part D coverage.
• The SSA, not Allina Health | Aetna, decides if you have to pay an IRMAA.

For this year’s IRMAA amounts and more information, visit Medicare.gov.

It depends. You must meet certain Internal Revenue Service (IRS) requirements to deduct any health expenses.

We don’t offer or intend the information we give you to be tax advice. To find out if a health expense is tax deductible, you can:

• Review IRS Publication 502, Medical and Dental Expenses, available at IRS.gov/forms-pubs/about-publication-502.
• Talk with your tax advisor
• Call the IRS at 1-800-829-1040 ${tty}