What Does Medicare Cost?

We get this question a lot. What does Medicare cost? And it depends on which option you choose, your medical needs or whether you qualify for financial assistance, etc… It’s difficult to put a cost on Medicare because of how the program works. There are four parts to Medicare A, B, C and D. Plus, a supplement plan called Medigap. You can pick and choose the plans you want to enroll in, you do not have to enroll in all of them. As you’ll see, prices are affected by each state you live in and how much you make

Let’s break it down a little further. For 2021, the basic Medicare costs are:

Part A premium

• Most people don’t pay a monthly premium for Part A (sometimes called “premium-free Part A“).
• If you buy Part A, you’ll pay up to $471 each month. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $471 each month.
• If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $259 each month.

Part B premium

• The standard Part B premium amount is $148.50 (or higher depending on your income).

Part C premium

• The Part C monthly premium varies by plan.

Part D premium

• The Part D monthly premium varies by plan (higher-income consumers may pay more). 

Knowing how the expenses work is vital to understanding the costs of Medicare. Premiums (monthly cost to have the plan), deductible (amount you pay before insurance covers their costs), copay (the flat fee for covered services) and coinsurance (percentage of costs you pay for reaching your deductible).

There are a lot of options with Medicare; It’s best to find the one that will work for you and your expectations for your lifestyle. Call Advanced Insurance Concepts today and talk with Jim Rooney who will work with you to find the best Medicare option.