Fact Sheet
January 11, 2021

Beneficiary Cost in Medicare

The Medicare program offers seniors two basic options, Traditional Fee-For-Service (FFS) Medicare or Medicare Advantage for the coverage of Part A and B benefits. With each choice, coverage options are selected by beneficiaries based on their health care needs, finances, and preferences. The total amount, co-pays, and deductibles paid by beneficiaries vary depending on the selected coverage.

Policy Recommendation:

It is important for Medicare beneficiaries to understand the array of coverage offerings and associated cost sharing obligations in order to make the best choice. Specific plan offerings differ by state and region. To ensure new and returning beneficiaries have the information to make the best selection, the Centers for Medicare & Medicaid (CMS) must continue to improve written and online materials to provide clear, unbiased, user-friendly language and graphics, and engage in public campaigns to inform and educate beneficiaries and their caregivers.

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