Medicare Cost Plan

A Medicare Cost Plan is a type of Medicare plan available in some areas. It is very similar to Medicare Advantage.

In a Medicare Cost Plan: 

  • You can join even if you only have Part B. 
  • If you have Part A and Part B and go to a non-network provider, the services are covered under original Medicare. You would be responsible for applicable coinsurance and deductible. 
  • You can join anytime the plan is accepting new members. 
  • You can leave anytime and return to original Medicare. 
  • You can either get your prescription drug coverage through a Medicare Cost Plan, if it's offered, or you can join a Medicare Prescription Drug Plan (called Part D). 

Another type of Medicare Cost Plan only provides coverage for Part B services. 

Beginning in 2019, Medicare Cost plans cannot operate in areas with substantial competition from Medicare Advantage plans. This “competition clause” reduces the number of Medicare Cost plans available.

WebMD Medical Reference Reviewed by Sarah Goodell on November 17, 2021
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