Suppose you’re about to enroll in Medicare or are already enrolled. In that case, you must keep up with cost changes each year to ensure you will be getting the coverage you need at a cost you can afford.
When you have Medicare, you may pay for costs such as premiums, deductibles, and coinsurance.
Medicare Part A Premium
Most people qualify for premium-free Part A, meaning you don’t have to pay anything for Part A. You can usually be eligible for premium-free Part A if you’ve worked a total of ten years (40 quarters) because while you worked, you paid taxes into the Federal Insurance Contributions Act that funds Medicare. If you haven’t worked for ten years, you may still be able to qualify through your spouse or because of a disability.
If you buy Part A, your premium will be $471 each month as of 2021, but only if you paid fewer than thirty quarters (a little over seven years) in Medicare taxes. If you paid Medicare taxes for more than thirty quarters, but less than forty quarters (ten years), you’ll pay the standard Part A premium of $259 per month.
Medicare Part A Hospital Inpatient Deductible and Coinsurance
For your Medicare Part A deductible and coinsurance, you can expect to pay:
- $1,484 deductible per each benefit period
- $0 coinsurance for each benefit period (for days 1-60)
- $371 coinsurance per day of each benefit period (for days 61-90)
- $742 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- You pay all costs beyond lifetime reserve days
Medicare Part B Premium
The standard Part B premium is $148.50, but you may pay more if you have a higher income. Usually, you start paying more once your income is above $88,000 per year.
Medicare Part B Deductible and Coinsurance
Your Medicare Part B deductible is $203. After you meet this deductible, you will pay 20% of the Medicare-approved amount for most doctor services, outpatient services, and durable medical equipment (DME).
Medicare Part C Premium
If you have Medicare Part C, your monthly premium will vary according to your specific plan. Some Medicare Part C plans have no monthly premium.
Medicare Part D Premium & Deductible
Medicare Part D premiums can vary, and if you are higher-income, you may pay more. Higher costs begin once you make over $88,000 a year. However, the standard premium for Part D in 2021 is typically around $30.
As for the deductible, the maximum limit is $445, but it can be less depending on the plan and insurer.
Game Changing Benefits Can Help You Choose the Right Medicare Plan For You
Your health matters, so your healthcare matters. At Game Changing Benefits, we care about your insurance and retirement needs. That’s why we’re committed to helping you choose the right Medicare plan for your budget and your health.
If you have any questions or concerns about the costs of Medicare, reach out to us today.