Estimated Annual Cost
This is an estimate of the average annual amount you will need to spend on health care. This cost includes plan benefits; cost sharing like deductibles, copays, and coinsurance; premiums; and costs not covered by your health plan. Your out-of-pocket costs may vary depending on your age and health status, as they are based on the actual amount of health coverage used by people with Medicare. If you have limited resources and income, your total expenses may be lower.
The estimated annual cost of health care for Peter was $200 less than he initially thought, which delighted him.