This chart illustrates total Medicare-related health care costs experienced by today’s 65-year-old with original Medicare, and how those costs may increase over time. Costs include Medigap, which is a supplemental policy that covers co-pays and deductibles for Parts A and B. Medigap plans are standardized, with Plan G being the most comprehensive available for most new beneficiaries. Part D for prescription drugs and prescription out-of-pocket expenses are also included. Average costs are about $479 per month or about $5,740 per person annually. These costs are projected to more than triple over 30 years in today’s dollars for three reasons: 1) higher than average inflation for health care expenses; 2) increased use of health care at older ages; and 3) Medigap premiums that increase not only with inflation but also due to increased age in most states. These costs do not include most long-term care expenses.