Before you make any decisions about Medicare, start by learning more about the components of cost sharing under Part B.

• Premium. You pay a premium for Part B. The premium amount depends on your yearly income and can be automatically deducted from your Social Security benefits.
• Deductible. The annual fee you must pay for care before Medicare begins to cover costs.
• Co-payment (or co-pay). A fixed fee you pay at the time of service. Outpatient hospital services have copayments that can range from a few dollars up to one thousand dollars or more.
• Coinsurance. The difference between what percentage Medicare pays and what percent you pay for health care costs. After you pay your deductible, Part B generally pays 80 percent and you pay 20 percent as co-insurance.