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Deductible

The amount you pay out-of-pocket before your insurance begins to cover costs.
Reviewed by Aaron Sims, Licensed Life & Health Agent since 2012

Medicare Term

Definition

The amount you pay out-of-pocket before your insurance begins to cover costs.

A deductible is the fixed amount you must pay for health care services each benefit period before Medicare or your plan starts paying its share. For example, the Medicare Part A deductible covers the first 60 days of each hospital stay, while the Part B deductible is an annual amount you pay before Part B starts covering 80% of approved services.

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