If you have Medicare as primary coverage and a secondary policy, then in most cases your expenses will be covered except for an annual Medicare deductible of about two hundred dollars or less. Many secondary policies will even cover that annual deductible. If you have just Medicare coverage and no secondary policy, then you will usually be responsible for payment of twenty percent of any expenses that are incurred. These expenses are based on the amount allowed by Medicare and not on the amount billed by the physician or hospital. Since Medicare fees are often lower than other fees, often a physician or hospital will bill a higher amount than Medicare allows. However, he can only collect the amount allowed by Medicare.