Medicare Part A benefit periods can be confusing, and many beneficiaries are surprised to learn they may face more than one deductible in a single year. Here’s what you need to know.
How Medicare Part A Benefit Periods Work
Unlike private insurance, Medicare Part A does not use annual benefit periods. Instead:
- A benefit period begins the day you are admitted to a hospital or skilled nursing facility.
- It ends when you’ve been out of the hospital for at least 60 days.
- If you’re readmitted after 60+ days, a new benefit period begins — and you’ll pay a new deductible.
Costs in 2025
- Deductible: $1,632 per benefit period.
- Days 1–60: $0 after deductible.
- Days 61–90: $408 per day.
- Days 91+: $816 per day using lifetime reserve days (you only get 60 total).
- After reserve days are used, you pay all costs.
Example Scenario
Meet Helen, age 67. She is hospitalized twice in one year, more than 60 days apart. Because a new benefit period started, she had to pay the Part A deductible both times — and coinsurance for days past 60. Without additional coverage, these costs can add up quickly.
How Medigap Can Help
Medicare Supplement Insurance (Medigap) can reduce or eliminate these out-of-pocket costs:
- All Medigap plans cover your Part A coinsurance, plus an extra 365 days of hospital coverage after lifetime reserve days are used.
- Most Medigap plans also cover part or all of the Part A deductible.
Compare Medigap plans to see how you can avoid paying multiple deductibles in the same year.