Cost of Medicare
Understanding the Cost of Medicare
Choosing a healthcare plan is a hard choice for many people. Not only do you have to worry about what coverages to select, but you also have to think about what is the cost of Medicare as well. For those who qualify for Medicare, the process of diagnosing the costs and fees associated with each part can be daunting, to say the least. As a general rule, Medicare was established to help lower medical costs for the senior population and those with disabilities. Even though it succeeds in this regard, beneficiaries are still responsible for paying deductibles, coinsurance, copays, and monthly premiums. To help keep the cost of Medicare and of each plan straight in your head, there is a breakdown of each below.
What Expenses to Expect – Medicare Part A
The one section where you may save the most money is Medicare Part A. In fact, if you qualify for it you may not have to pay a monthly premium at all. In order to take advantage of the reduced rate, you must have worked in the United States for a minimum of 10+ years. Luckily, unlike other parts of Medicare, even if you haven’t worked the full 10 years you may still be able to get a partially reduced rate based on the number of years you were employed. For everyone else who doesn’t fall into either of the categories above, you will still need to pay monthly premiums and partial costs for medical services.
What Expenses to Expect – Medicare Part B
Medicare Part B has the most streamlined approach to costs as the expenses remain consistent, with the exception of those with higher incomes. The way that Part B determines who pays the higher premium is based on modified adjusted household gross income. In this equation, the sum of your income from wages, capital gains, investment dividends, Social Security, and pensions are compared to the predetermined threshold. Depending on where you fall within that guideline, you may have to pay a higher rate. For the majority of people, this will mean a monthly premium payment of around $145. For others, the price could be as high as $400 – $500 a month.
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What Expenses to Expect – Medicare Part C
For those looking for flexibility in cost of Medicare Part C is one of the best options in the Medicare umbrella. Since Part C is provided through private insurance there are multiple options that policyholders have to choose from. Each option comes with its own price tag but tends to be lower than what Original Medicare typically costs. The plans that are a little higher can be worth it as they allow for additional coverages for routine dental, vision, and hearing care. Without these added benefits, premiums can start below $100 per month.
What Expenses to Expect – Medicare Part D
Medicare Part D is another plan that takes into account adjusted gross income when deciding what the costs will be. Costs can be controlled, however, depending on which prescription drug plan you ultimately decide to go on. Most plans will vary slightly from state to state and feature different benefits according to the service area. For those who want a cost-savings plan, there are policies that can be as low as $10 to $15. On the other hand, others that provide more coverage can cost hundreds of dollars each month. In addition to the premium, you should expect to also pay deductibles, copays, and coinsurance percentages.
Advanced Insurance Concepts Can Help You Find a Plan
Deciding on a Medicare plan that not only keeps you covered but falls within your target price range is important. Our team of licensed agents works to understand your goals, and helps guide you through the process of selecting the best plan to meet all your needs. To get started with a free consultation, give us a call today at 816-476-8191.