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A vast majority of individual and family debt in the United States is due to medical bills. For this reason, medical expenses are a top concern for most Americans. Many people worry about how to control their Medicare costs. Out-of-pocket expenses include all medical expenses that you have to pay out of your own pocket, such as deductibles, copayments, and coinsurance. While medical expenses can easily overwhelm an individual or family budget, there are ways to reduce your Medicare costs.

Evaluate your drug coverage. Prescription drugs are one of the biggest out-of-pocket expenses for the majority of older adults in the United States, and are sometimes their second largest monthly expense right behind housing. Not all plans cover all drugs equally. Compare Medicare plans to find the one with the cheapest prices for the drugs you need the most. Plans with maximum spending limits for prescription drugs could also significantly lower your out-of-pocket Medicare costs.

Ask for generics. While there are instances in which brand name drugs are medically necessary, in many cases the generic drugs are far cheaper and work just as well. If your prescription drug plan (whether offered through Medicare Part D or as an added benefit to a Medicare Advantage Plan) requires that you pay, for example, 25% of the full amount of each drug you purchase, a generic drug could save you a lot of money. Many times doctors do not consider the prices of medications when they write prescriptions. Do not be afraid to talk with your doctor or your pharmacist to find out whether a generic may be an option for you. It could make a big difference to your budget.

Review your eligibility for Medicare Savings Programs and Medicare’s Low Income Subsidy. Medicare offers financial support to Medicare beneficiaries with low income and limited resources. The application process for two of these programs—Medicare Savings Programs and Medicare’s Low Income Subsidy—may seem overwhelming to some people. Beginning this year, the National Council on Aging has a new online tool, BenefitsCheckUp, which helps determine your eligibility for the programs and will assist you with an easy application. In many cases, the programs can offer lower Medicare costs with reduced premiums, deductibles and copays. Find out more at http://www.benefitscheckup.org/.

Use tools such as the AARP’s doughnut hole calculator. The AARP has developed an interactive tool that can help you figure out how close you are to the reaching the coverage gap in Medicare Part D known as “the doughnut hole.” The tool will also help you identify equivalent but less expensive alternatives to the drugs you already take. Once cheaper and therapeutically similar drugs are identified, the tool will generate a letter to take to your doctor that asks about the pros and cons of making a switch. Visit http://doughnuthole.aarp.org/ for details.

Take advantage of free preventative services. Under the new health care law, many preventative services will now be offered for free to people on Medicare. Such routine care can help detect problems early while they are less troublesome and costly to fix. While only Original Medicare is required to offer these services for free, many Medicare Advantage Plans already include free preventative care. Review your plans and save yourself some money on medical bills by making prevention your health care goal.

Choose a Medicare Advantage Plan. Some Medicare Advantage Plans offer better benefits at a lower cost than Original Medicare. There are even Medicare Advantage Plans that will pay part of your monthly Medicare Part B premium. While some plans, such as HMOs, may have stricter rules and more restrictive doctor choice than Original Medicare, copayments and monthly premiums may be less, which translates to fewer out-of-pocket costs for you.

Consider a Medigap Policy. If you have significant out-of-pocket medical expenses due to a gap in your Original Medicare coverage, you may want to consider a Medigap policy. These policies were designed to “fill the gaps” in Original Medicare and help pay some of the Medicare costs that are not covered under Medicare Part A and Part B. There are monthly premiums attached to Medigap policies but you may be able to save money if the savings of the coverage will be greater than the amount you spend each month on the premium. People with Medicare Advantage Plans do not need Medigap policies.

Review your plan every year. Your out-of-pocket expenses will be determined largely by the services you need, how often you need them, and how much you pay for each service or visit to the doctor. Plans vary in their deductibles, coinsurance amounts, and services provided. Remember, higher monthly premiums usually mean fewer out-of-pocket expenses. If you have extensive treatment needs or you visit the doctor frequently, you may save money by choosing a plan with a higher monthly premium. Alternately, if you are rarely sick and have no diagnosed illnesses, you may save money by choosing a plan with a low monthly premium and a high annual deductible. Compare the out-of-pocket costs associated with the prescriptions and services you need every month across different plans. A thorough review of your plan every year and a comparison of your plan with the others available in your area will help keep your Medicare costs down by ensuring that you have the plan best suited for you.

Thankfully, there are several steps you can take to help lower your Medicare costs and keep your out-of-pocket expenses in control. For additional information on Medicare plans and coverage, visit www.Medicare.gov.