Typically, you pay a monthly premium for Medicare coverage plus a portion of the cost each time you use a covered service. There is no annual deductible limit unless you have additional insurance, such as being associated with a Medicare Supplement Insurance (Medigap) policy or Medicare Advantage plan.

Medicare is divided into four parts that cover various health-related expenses. Medicare Parts A and B are considered Original Medicare. Medicare Advantage is Part C, while Prescription Drug Coverage is Part D. Private insurance companies provide Parts C and D.