How to Lower Your Medicare Costs

Practical ways to spend less

• Compare plans every year at AEP.Plans change their premiums, formularies, and networks annually. During the Annual Enrollment Period (Oct 15–Dec 7), re-shop your Medicare Advantage or Part D plan — last year’s best deal may no longer be yours.
• Consider Medigap for predictable costs. A Medicare Supplement plan turns unpredictable 20% coinsurance into a steady monthly premium, which protects you because Original Medicare has no out-of-pocket maximum.
• Use Part D wisely and lean on the $2,000 cap. Pick the plan that covers your specific drugs, use generics and preferred pharmacies, and remember that once you hit the $2,000 annual out-of-pocket ceiling you pay nothing more for covered drugs. Insulin stays capped at $35 per month.
• Check Extra Help and Medicare Savings Programs. If your income and assets are limited, these programs can wipe out or sharply reduce your Part D and Part B costs. Many people who qualify never apply, so it is worth checking with Social Security or your state Medicaid office.
• Manage income to avoid IRMAA.Higher earners pay surcharges on Part B and Part D. Timing Roth conversions, capital gains, and withdrawals — or filing Form SSA-44 after a life change — can keep you under a bracket. See our IRMAA planning strategies.
• Use preventive services — they are free. Medicare covers many screenings, vaccines, and an annual wellness visit at no cost to you. Catching problems early avoids far more expensive care later.

Match the strategy to your situation

The right mix depends on your health, your medications, and your budget. Someone with chronic conditions often saves most with Medigap and a strong Part D plan; a healthy retiree may do well with a low-premium Medicare Advantage plan. Our Advantage vs. Supplement comparison walks through the trade-offs, and the Medicare costs hub lays out every 2026 number.

Get personalized help

A licensed advisor can run your specific drugs and doctors through every available plan and estimate your real annual cost — at no charge. For more tips, read our guide on how to lower Medicare costs.