Medicare costs are rising, but help is available for many enrollees

As we age, understanding our health care coverage becomes increasingly important, especially when it comes to managing costs. Many Medicare beneficiaries find themselves facing substantial out-of-pocket expenses, even with coverage [Medicare Rights Center]. These costs can include premiums, deductibles, and co-payments, as well as services not fully covered by Medicare, such as comprehensive dental, vision, and hearing care [Medicare Rights Center].

The Burden of Out-of-Pocket Costs

For many, these financial burdens are considerable. In 2024, nearly one-quarter of Medicare beneficiaries, totaling 16.5 million people, reported incomes below $24,600 and savings less than $18,950 [Medicare Rights Center]. A large portion of these individuals, about 55% in 2025, relied on Social Security benefits for at least 75% of their income [Medicare Rights Center]. Given this, the costs of Medicare Part B and D alone accounted for nearly one-fourth of their average monthly Social Security benefits [Medicare Rights Center]. Such significant expenses can force beneficiaries to make difficult choices, with over one-third (36%) delaying or skipping necessary care in 2023 due to cost [Medicare Rights Center].

Medicare Savings Programs Offer Assistance

Fortunately, programs are in place to help alleviate some of this financial strain. Medicare Savings Programs (MSPs) and Medicaid can provide crucial assistance for eligible Medicare beneficiaries by helping to pay for premiums, deductibles, and co-insurance [Medicare Rights Center]. These programs are designed to support older adults and individuals with disabilities who have limited income and resources.

A Glimpse of Hope from New York

Recent research from academic experts highlights the positive impact of policies aimed at increasing access to these cost-saving programs. In New York, efforts to expand MSP eligibility have shown promising results, leading to greater enrollment and improved coverage for beneficiaries [Medicare Rights Center]. This suggests that policy changes to make these programs more accessible can be highly effective in reducing the financial burden on those who need it most.

Checking Your Eligibility

If you are a Medicare beneficiary struggling with health care costs, it is worth exploring whether you qualify for Medicare Savings Programs or Medicaid in your state. These programs can significantly reduce your out-of-pocket expenses and ensure you can access the care you need without undue financial stress. Contact your local State Health Insurance Assistance Program (SHIP) or Medicaid office to learn more about eligibility requirements and how to apply.