Cost of Medicare

The cost of Medicare is dependent on various personal and location variables. Let’s look at each of the coverage parts of Medicare individually to understand its cost better.

How much does Medicare Part A cost?

Medicare Part A generally covers short-term hospital and urgent care. This plan charges a monthly premium fee of typically $252, depending on the amount of Medicare taxes paid while working. However, most people qualify for premium-free part A coverage.

You qualify for premium-free coverage if:

You are 65 or older and currently receive Social Security or Railroad Retirement Board (RRB) Benefits.
You are 65 or older and eligible for these benefits but have not yet applied.
You or your spouse are 65 or older and had Medicare-covered by government employment.
You are under 65 and received Social Security or RRB disability benefits for at least 24 months.
You are under 65 and have End-Stage Renal Disease (ESRD).

How much does Medicare Part B cost?

Medicare Part B requires a monthly premium fee. Rather than paying out-of-pocket, this fee is automatically deducted from either Social Security, Railroad Retirement Board (RRB), or Office of Personnel Management benefits. If you do not receive these benefits, you will receive and pay a bill.

The 2020 standard premium fee is $144.60. However, if your file individual tax return was more than $87,000, this fee is subject to change. Most people, however, pay the standard.

You must also pay a small yearly deductible for Part B coverage. As of 2020, this fee is $198. You may also have to pay a 20% fee on most doctor services, outpatient therapy, and durable medical equipment (DME).

How much does Medicare Part C (Medicare Advantage) cost?

Because it is offered by private insurers and not the federal government, the cost of Part C coverage is subject to variable costs depending on your chosen plan and location. However, there are many simple ways to communicate with your plan and understand your costs.

If you are already in a Part C plan, you can find more payment details by reviewing your plan’s yearly “Evidence of Coverage” (EOC) notice to understand more about the plan’s coverage offerings, payments, etc.

You can also review your plan’s Annual Notice of Change (ANOC). This notice outlines any annual cost increases, coverage changes, etc. that will be in effect the upcoming year.

If you have not yet chosen a Medicare Advantage plan, your costs will depend on many factors. These may include:

Whether the plan charges a monthly premium (some do not)
Whether the plan charges a yearly deductible and how much
How much the plan charges for copayments and coinsurance.
The plan’s limit on out-of-pocket costs

This is not an exhaustive list. Be sure to talk with us about your Medicare Advantage Plan to understand its costs and coverage options better.

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How much does Medicare Part D cost?

Medicare prescription drug coverage (Part D) is also dependent on the individual plan you choose. It will also vary due to the specific drugs you use and whether they are on your plan’s formulary, whether or not your pharmacy is in-network, and whether you are eligible for and receive extra help.

Like the other parts, you also pay a monthly premium, yearly deductibles, varying copayments and coinsurance, and potentially a late enrollment fee. Research and talk to your plan to understand costs and your coverage needs.

Are you searching for budget-friendly Medicare coverage?

Call Medicare Strategist now!

Your insurance needs should be reasonably priced and uncomplicated. If you are looking for comprehensive and budget-friendly Medicare coverage, give us a call at (912) 412-0244.