One of the most common questions I get from people approaching 65 here in Mesa and across the East Valley is simple: how much is Medicare actually going to cost me? The answer isn’t as straightforward as most people expect, because Medicare has several moving parts — and each one comes with its own price tag.
Let me break it down so you know exactly what to budget for.
Medicare Part A: Hospital Coverage
Most people qualify for premium-free Part A because they or a spouse paid Medicare taxes long enough while working, generally at least 10 years. People who do not qualify may be able to purchase Part A, with the premium depending on their work history. Check Medicare’s Part A cost guidance for the rules that apply to you.
Part A is not free when you use it. In 2026, the inpatient hospital deductible is $1,736 per benefit period, not per calendar year. A new benefit period starts after you have gone 60 consecutive days without inpatient hospital care or skilled care in a skilled nursing facility. For a covered inpatient hospital stay, the daily Part A coinsurance is $0 for days 1–60 after the deductible, $434 for days 61–90, and $868 for each lifetime reserve day used. Physician services may be billed separately under Part B. Source: CMS 2026 Medicare premiums and deductibles.
Those gaps are a reason to compare Medicare Advantage with Original Medicare plus a supplement. Medicare Advantage is an alternative way to receive Medicare benefits, not a Medigap supplement added on top of Original Medicare.
Medicare Part B: Doctor Visits and Outpatient Care
The standard Part B premium is $202.90 per month in 2026. People receiving Social Security generally have it deducted from their benefit payment. Income-related surcharges, called IRMAA, start above $109,000 for individual tax filers or $218,000 for married couples filing jointly; different rules apply to married filing separately. Social Security generally uses your tax return from two years earlier. Some people receive assistance with premiums or have other adjustments, so check your own notice. Source: CMS 2026 Part B and IRMAA amounts.
The 2026 Part B annual deductible is $283. After meeting it, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment when the provider accepts assignment. Other services have different cost-sharing rules. Original Medicare does not have an annual out-of-pocket limit unless you have additional coverage that helps with these costs. Source: Medicare costs.
Medicare Part D: Prescription Drug Coverage
Part D premiums, deductibles, and prescription copays vary by plan. For an Arizona comparison, use your ZIP code, exact medications, and preferred pharmacy. Compare the estimated full-year premium plus covered prescription costs instead of assuming the lowest-premium plan is the least expensive overall. Any Part D income-related surcharge is separate from the plan premium.
For 2026, the annual out-of-pocket threshold for covered Part D prescription drugs is $2,100. The $2,000 threshold applied in 2025. Once your qualifying out-of-pocket spending reaches the 2026 threshold, you pay $0 for covered Part D drugs for the rest of the calendar year. Premiums, drugs the plan does not cover, and medications covered under Part B are not included in this Part D limit. Source: Medicare 2026 drug costs.
Medicare Advantage: The All-in-One Option
Medicare Advantage is an alternative way to receive your Part A and Part B benefits through a private plan. Most plans also include Part D prescription coverage, and some offer dental, vision, or hearing benefits. A plan may have a $0 additional premium, but you generally still pay the Part B premium. Available plans and benefits depend on your service area and the coverage year. Compare Original Medicare and Medicare Advantage.
Network rules, referrals, copays, and coinsurance depend on the Medicare Advantage plan. Each plan has an annual out-of-pocket limit for covered Medicare medical services; some distinguish in-network costs from combined in- and out-of-network costs. Check the specific plan documents instead of relying on a statewide price range. Premiums and Part D drug costs are separate from that medical limit.
Medicare Supplement: Predictable Costs
A Medicare Supplement (Medigap) policy helps pay certain costs left by Original Medicare. Premiums vary by insurer, policy, age, location, rating method, and other eligibility factors, so request a current quote rather than relying on a generic Arizona range. Most Medigap policies let you use any provider nationwide who accepts Medicare; Medicare SELECT policies have additional network requirements. Prescription drug coverage is generally purchased separately.
For a standard Plan G policy, the $283 Part B deductible in 2026 remains your responsibility, while the policy pays its specified share of other Medicare-covered costs. That does not mean every healthcare expense is covered: premiums, prescription drugs, routine dental care, and other services Medicare does not cover require separate consideration. High-deductible Plan G has a different deductible structure. Source: Medicare’s Medigap benefit comparison.
So What’s the Total?
For Arizona residents comparing coverage in 2026, calculate the total using actual plan quotes and your own care needs. Reviewing next year’s changes? Start with the Arizona Annual Notice of Change checklist for 2027 coverage; the 2026 cost figures on this page should not be treated as 2027 estimates.
Medicare Advantage route: Add your Part B premium, any plan premium, and any income-related surcharges, then estimate your medical and prescription costs. For example, someone paying the standard 2026 Part B premium with a $0-premium Advantage plan starts at $202.90 per month before copays and other costs. This is an illustration, not a plan quote.
Original Medicare plus a supplement: Add your actual Part B premium, Medigap premium, standalone Part D premium, and any income-related surcharges. Then include the deductibles and other costs your policies leave to you. Your medications, policy, and eligibility determine the total; there is no single price that applies to everyone in Arizona.
Neither option is universally better — it depends on your health, your doctors, your medications, and how you prefer to budget. That’s exactly the kind of conversation I have with people every day.
The Bottom Line
Medicare costs in Arizona aren’t one-size-fits-all, and the right plan can save you thousands of dollars a year compared to the wrong one. The best move you can make is to sit down with someone who knows the local plans and can compare them side by side based on your specific situation.
I help people across Mesa, Gilbert, Chandler, Tempe, and the entire East Valley figure this out every day. There’s no cost to work with me and no pressure — just a clear conversation about your options.
Call me at 480-296-5804 or fill out the form and I’ll reach out at a time that works for you.
Andy Childs is a licensed Medicare broker based in Mesa, Arizona.