It is almost a given that most people have heard of Medicare at some point in their life. One thing that is commonly misunderstood is that even though the plan is put in place to help provide healthcare to those over the age of 65, it still comes at a cost. The majority of beneficiaries on Medicare will pay premiums, deductibles, copays, and other costs associated with medical expenses. Below is a breakdown of each section of the healthcare and what the cost might look like.
Medicare Part A Cost
Medicare Part A is one of the few areas of the plan where you might not have to pay anything. In fact, the majority of people will qualify for zero cost and monthly premium if they worked for more than 10+ years in the United States. Those who have to buy into Part A should expect to pay around $450 a month in premium payments. For anyone who is in between 30 quarters and the 40 quarters required for it to be free, may qualify for a pro-rated premium.
Medicare Part B Cost
The cost of Medicare Part B is standard for most people but about five percent of beneficiaries could pay more due to higher incomes. Premiums for Part B are based on an individual’s modified adjusted household gross income. Modified adjusted household gross income is calculated by adding together any money earned through dividends from investments, wages, capital gains, wages, Social Security benefits, and pensions The Social Security office will use your tax returns from prior years to determine how much you will have to pay monthly.
For the majority of people, this means that a monthly premium of around $145 is to be expected. Anyone who is in high tiered income brackets should expect to pay between $400 and $500 a month in premiums.
Medicare Part C Cost
Out of all the sections of the Medicare Plan, Part C has the most price flexibility. This is due in large to the fact that it is provided through private insurers who control the costs. Premiums can be more expensive at times than Original Medicare, as private insurers offer additional coverage for things like dental, vision, and hearing.
Medicare Part D Cost
Similar to Part B, Medicare Part D’s cost is based on the beneficiary’s income. Most of the time the cost of premiums can also be affected by which plan you decide to be on. With plans varying from state to state, it is possible that you may have more than 20 options to choose from. For anyone looking to stay on the lower-cost end, some plans can be as low as $10 to $15 a month in some states for the base premium. In addition to the base, you could be required to pay copays, a percentage of the cost of the drug, or deductibles on a plan
iHealthcare is Here to Help
As Medicare costs continue to change and update every year it is hard to determine what is the best plan for your budget. At iHealthcare, we specialize in working with our clients to find the best plan for the best price. To schedule a meeting or get a free quote, give us a call at 713-900-1901.