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Confused About Medicare? Understanding these key terms can help...

Annual Notification of Change
A letter sent by your Medicare Advantage Plan insurance company that informs you of changes to your benefits for 2015. It is included in a big package of material, mailed around the first of October.

Coinsurance
The amount you may be required to pay as your share of the cost for services after you pay any deductibles. Coinsurance is usually a percentage (for example, 20%).

Copayment
The amount you may be required to pay as your share of
the cost for a medical service or supply, like a doctor’s visit, hospital outpatient visit, or prescription. A copayment is usually a set amount, rather than a percentage. For example, you might pay $10 or $20 for a doctor’s visit or prescription.

Deductible
The amount you must pay for health care or prescriptions before Medicare, your prescription drug plan, or your other insurance begins to pay.

Drug Formulary
A list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits.

Out of Pocket Maximum
The yearly out-of-pocket maximum is the highest or total amount your health insurance company requires you to pay towards the cost of your health care.

Premium
The periodic payment to Medicare, an insurance company, or a health care plan for health or prescription drug coverage.

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