When you first hit the eligibility age bracket or find yourself eligible in other ways to receive Medicare coverage, you may find yourself immediately wondering how much the coverage will cost you. After all, most people know that Medicare doesn’t cover every aspect of your healthcare treatment and often still leaves you with a portion of the bill to pay. In this respect, understanding the costs associated with Medicare health insurance can be quite confusing if you don’t have a trusted agent to walk you through it.
The easiest way to break down the costs of Medicare is by looking at each part. Below are the four main Medicare plans and their premiums to help you make an informed decision on what is best for you.
The Costs You Can Expect Under Part A
The best thing about Part A is that if you are fully eligible and tick all of the boxes associated with eligibility, you don’t have to pay a plan premium. The main areas you need to meet are with regards to age and the fact that you have worked for at least ten years’ in the United States, all the while paying the Medicare payroll tax. If this isn’t the case, you will likely find yourself facing a monthly premium though the amount of this premium is dependent on how long you have worked. Those who have worked for under ten years may find they still benefit from a reduced rate.
The Costs You Can Expect Under Part B
Part B is consistent in terms of the expenses you can expect to pay, with calculations being made based on your household’s gross income. The sum of your wage income, capital gains, investment dividends, Social Security, and pension will be compared with the predetermined threshold rate to work out the plan premium. Depending on how you fall into that threshold, the rate you must pay is calculated and passed over to you as a monthly premium.
The Costs You Can Expect Under Part C
Part C is operated by private insurance companies. So when compared with the other Medicare plans, both the coverage options and costs are far more controlled and in line with your individual requirements. The higher the plan premium, or the more you pay, the more coverage you will get – meaning that you can start with an extremely low monthly cost and receive basic coverage, or add additional features and pay higher fees.
The Costs You Can Expect Under Part D
Part D is another one where your income plays a big part in determining how much the cost of Medicare will be for you. Calculations are made regarding how much income you have and which prescription drug plan you decide to opt-in for. If you want to cut costs, then there are plans with premiums as low as a few dollars a month. However, consumers need to be aware that in these cases, the coverage is minimal. You should also expect some copayment bills, coinsurance, and deductibles on top of plan premium rates.