What percentage of healthcare costs does Medicare cover?

Medicare is a federal health insurance program primarily designed for individuals aged 65 and older, but it also covers certain younger individuals with disabilities and specific diseases. One of the critical features of Medicare, particularly in relation to Part B (which covers outpatient services), is that it typically covers approximately 80% of allowed charges for covered services after the annual deductible is met. This means that beneficiaries are responsible for the remaining 20%, which they may cover through supplemental insurance or out-of-pocket.

Knowing that Medicare's coverage is fundamentally structured around this 80% rule allows individuals to better understand their financial responsibilities when utilizing these services. This percentage is foundational in calculating the costs that beneficiaries will incur, as well as in planning for potential out-of-pocket expenses in conjunction with Medicare coverage. Beyond this, the program is designed to help alleviate the financial burden of healthcare, aligning closely with its goal of promoting access to necessary medical services among the elderly and eligible disabled population.