The 2023 Medicare deductible amounts

In 2023, the Part A deductible (hospital insurance) is $1,600 per benefit period. A benefit period starts when you enter the hospital and ends 60 days after you leave — if you go back to the hospital after those 60 days, you pay the deductible again.

The Part B deductible (medical insurance) is $226 per year in 2023. You pay this once each calendar year before Medicare starts to pay its share of doctor visits, tests, and outpatient care. After you meet the deductible, you typically pay 20 percent of the cost for most services, and Medicare pays 80 percent.

If you have a Medigap policy (supplemental insurance), it may cover some or all of these deductibles, depending on which plan you chose. If you have a Medicare Advantage plan (Part C), the deductible structure is different and varies by plan — your plan documents will show your specific deductible.

Key Takeaways

  • Part A deductible in 2023 is $1,600 per benefit period, which resets if you leave the hospital for 60 days and then return.
  • Part B deductible in 2023 is $226 per year, and you pay it once before Medicare begins sharing costs.
  • Medigap plans may cover your deductibles entirely, depending on which plan letter (A through N) you selected.
  • Medicare Advantage plans have their own deductible amounts that differ from Original Medicare, so check your plan documents.
  • Deductible amounts change each year, so the 2023 figures will be different in 2024 and beyond.

How the Part A deductible works in the hospital

When you are admitted to the hospital, you pay the $1,600 deductible for the first day and any additional days in that stay. After you pay the deductible, Medicare covers all inpatient hospital costs for days 1 through 60 of your stay. On days 61 through 90, you pay $400 per day. If you stay longer than 90 days, you enter what Medicare calls "lifetime reserve days," and the cost rises to $800 per day.

The key word is "benefit period." If you leave the hospital and do not return within 60 days, a new benefit period begins. If you do return within 60 days, you are still in the same benefit period and do not pay the deductible again. This matters because a person who has multiple short hospital stays in a few months pays the deductible only once, but someone who leaves the hospital, waits 61 days, and returns will pay it twice.

How the Part B deductible works for doctor and outpatient care

The Part B deductible applies to doctor visits, lab tests, X-rays, outpatient surgery, and most other services outside the hospital. You pay the full cost of these services until you have spent $226 out of pocket in 2023. Once you reach that amount, Medicare pays 80 percent and you pay 20 percent for most services for the rest of the calendar year.

Some services do not count toward the deductible. Preventive care — like annual wellness visits, cancer screenings, and vaccinations — is covered at no cost to you once you meet your Part B deductible, or sometimes with no deductible at all. Your doctor's office can tell you whether a specific service counts toward your deductible.

What Medigap plans cover

A Medigap policy is private insurance that works alongside Original Medicare (Parts A and B). The plan you chose — identified by a letter from A to N — determines what it covers. Some Medigap plans cover the full Part A deductible, some cover the full Part B deductible, and some cover both. Plan G, for example, covers both deductibles in full. Plan N covers the Part B deductible but not the Part A deductible.

If you have Medigap, you will not see the deductible as an out-of-pocket cost because your supplemental plan pays it. However, you do pay a monthly premium for that Medigap policy, so the protection comes at a cost. When comparing Medigap plans, look at both the monthly premium and what the plan covers.

Medicare Advantage deductibles are different

If you chose a Medicare Advantage plan (Part C) instead of Original Medicare, you do not use the Part A and Part B deductibles described above. Instead, your plan has its own deductible, which may be $0, or it may be several hundred dollars depending on the plan. Some Medicare Advantage plans have separate deductibles for different types of care — for example, a $250 deductible for hospital stays and a $0 deductible for doctor visits.

Your Medicare Advantage plan documents (called the Summary of Benefits or the Evidence of Coverage) show your exact deductible and how it works. If you are unsure, call the plan's customer service number, which is on your insurance card.

How deductibles change year to year

Medicare deductibles are adjusted each year based on the cost of healthcare. The 2023 amounts ($1,600 for Part A and $226 for Part B) are higher than they were in 2022. In 2024 and beyond, these numbers will change again. Medicare announces the new deductible amounts in the fall of each year, and they take effect January 1.

If you are on a fixed income, the yearly increase in deductibles can affect your budget. Some people choose Medigap plans specifically because the deductible coverage protects them from these annual increases. Others choose Medicare Advantage plans because some have $0 deductibles, though those plans may have other out-of-pocket costs like copays.

Questions to ask your doctor or plan

Before a test, procedure, or hospital stay, ask your doctor or their billing department whether the service counts toward your deductible and what your out-of-pocket cost will be. If you have Medigap, confirm with your insurance company whether the deductible is covered under your plan. If you have Medicare Advantage, ask your plan directly what your deductible is for that specific service.

Keep track of what you have paid toward your deductible throughout the year. Many people lose track and are surprised to learn they have already met it. Once you reach the deductible, your cost-sharing changes, so knowing where you stand helps you plan for future medical expenses.

Frequently Asked Questions

Do I pay the Part A deductible every time I go to the hospital?

No. You pay it once per benefit period. A benefit period ends 60 days after you leave the hospital. If you return within 60 days, you are still in the same benefit period and do not pay the deductible again. If you return after 60 days have passed, a new benefit period begins and you pay the deductible again.

What happens if I do not reach my Part B deductible by the end of the year?

The deductible does not carry over. On January 1, it resets to $226 (or whatever the new year's amount is). Any amount you paid toward the 2023 deductible does not explore to 2024.

Does my Medigap plan cover the deductible?

It depends on which plan you chose. Some Medigap plans cover both deductibles, some cover one, and some cover neither. Your plan documents or your insurance company can tell you exactly what your plan covers. If you are unsure which plan you have, call the insurance company listed on your card.

Can I switch to a different Medicare plan to avoid the deductible?

You can switch plans during the Annual Enrollment Period (October 15 to December 7 each year) or if you may have access to for a Special Enrollment Period. However, switching plans does not eliminate deductibles — it just changes which deductible structure you have. Medicare Advantage plans may have lower deductibles, but they often have higher copays or other out-of-pocket costs.

Are preventive services subject to the deductible?

No. Medicare covers most preventive care at no cost, even before you meet your Part B deductible. This includes annual wellness visits, cancer screenings, and certain vaccinations. Ask your doctor whether a specific service is considered preventive.