Paying for Medicare coverage works a little differently then how we paid our health insurance premiums during our working years. While most of us have paid one large premium for all of our healthcare coverage (Doctor, hospitalization, and drug coverage) during our working years, Medicare coverage is paid in several smaller amounts for individual parts of coverage.
Typically, there is no cost associated with Medicare Part A (Hospital Insurance). As long as you have worked and paid taxes for at least 10 years (40 quarters) you will be entitled to Part A at no cost. Often times, you will hear people refer to this also as “premium-free Part A”. You may also be eligible for Part A at no cost if your spouse has met the previously mentioned requirements.
If you have to buy Part A, you will pay up to $458 per month in 2020. People that paid Medicare taxes for less than 30 quarters, the standard Part A premium is $458 in 2020. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $252 in 2020.
The standard Part B premium for 2020 is $144.60 for those who are:
For the most part, you will pay the standard Part B premium. However, if your income is over $85,000 (single) or $170,000 (married couple), then you may pay an Income Related Monthly Adjustment (IRMAA).
Your Part B premium will automatically be deducted from your benefit payment if you receive any of the following benefits:
You will pay $198 per year in 2020 for your Part B deductible. After the deductible of $198 is met, you usually pay 20% of the Medicare-approved amount for the following:
Most Medicare Part D plans charge a monthly premium that varies by plan carrier. If you are enrolled in an Medicare Advantage Plan, or a Medicare Cost Plan that includes Medicare prescription drug coverage, your prescription drug coverage will most likely be included in your monthly premium, and in some Part C plans, there will not be a premium.
If you have a high income you may pay an extra amount on top of your standard plan premium. Just like with Part B of Medicare, if you make over $85,000 as an individual or over $170,000 if you file your taxes jointly then you will pay an Income Related Monthly Adjustment Amount also called an IRMAA. Below is a chart that will tell you the extra amount you may have to pay based on your income.
If you find this all a little confusing then don’t worry… your not alone! Our Medicare experts can help you understand exactly what you will pay for each part of your Medicare coverage. We can help you determine your premiums right over the phone. Simply give us a call or click the button below and one of our licensed agents will give you a call to to assist you.