Do you understand the cost of having Medicare coverage? We’re breaking down Medicare costs for you.
Is Medicare free? There is a common misperception that there is no cost involved when it comes to Medicare coverage. Though this program is run by the federal government and supported by a combination of Social Security and Medicare taxes in addition to federal funding, it still has costs involved for individuals enrolled in the program. Let’s take a look at what that could mean for you.
Understanding Medicare Premiums
When you were employed, you contributed to your own Medicare coverage through your employer’s Social Security and Medicare tax withholdings. As long as you paid these taxes for ten years, you will receive premium-free Part A coverage. Part A is the hospital coverage under the Medicare program. It includes inpatient care in a hospital, skilled nursing facility, or hospice care. If you do not qualify for premium-free Part A coverage, meaning you paid Medicare taxes for less than 30 quarters, your monthly premium will be up to $458 per month. If you paid Medicare taxes for between 30 and 39 quarters, your premium payment would be $252 per month. If you paid taxes for 40 or more quarters, you pay no monthly premium.
Most people pay a standard amount for their Part B premiums. It’s dependent on income, however, the average standard Part B premium you can expect to pay in 2020 is $144.60. If your income was above a certain amount on your tax return from two years ago, you might be responsible for an Income Related Monthly Adjustment Amount (IRMAA). The Medicare website has information on income-related premiums for Part B insurance.
What Are the Other Medicare Costs?
While most people don’t pay for Part A premiums, there are still deductibles associated with certain healthcare and medical expenses. This is also true of Part B. Take a look at what your deductibles might look like:
- Medicare Part A – Hospital Stay:
- $1,408 deductible per benefit period
- $0 for the first 60 days in your benefit period
- $352 per day for days 61-90 of each benefit period
- $704 per day after day 90 of each benefit period, with a maximum of 60 days over your lifetime
- Medicare Part A – Skilled Nursing
- $0 for the first 20 days of each benefit period
- $176 per day for days 21-100 of each benefit period
- You are responsible for all costs for each day after day 100 of each benefit period
- Medicare Part B – Medical Insurance
- $198 for your annual deductible
- You are responsible for 20% of the Medicare-approved amount for doctor services, outpatient therapy, and durable medical equipment
- Medicare Part D – Prescription Drug Insurance
- Base premium of $32.74
Help Covering The Costs
Do all of these numbers have you worried you won’t be able to afford the medical care you need once you are eligible for Medicare? You’re not alone. That’s where Norgard Insurance Group can help. We offer Medicare supplement plans at a cost you can afford that help cover those additional expenses your Medicare plans don’t. You don’t have to worry about your future because it’s time to pay for Medicare coverage. When it comes to those extra costs, we’ve got you covered. Call us today at 813-454-5072 for a free evaluation of your medical and Medicare needs. We can help get you signed up for the right plans at the right price.