If you’re signing up for Medicare at age 65, or you’re shopping for Medicare policies, you’re probably wondering what Medicare premiums will cost you. If you’re on a fixed income, and even if you’re not, it’s normal to have questions about Medicare premiums and coverages. You want to plan for the future, and that’s great!
We’re Medicare insurance agents in Springfield, Mo, and if you have any questions about the following Medicare plan premiums, deductibles, and coinsurance, we’re just a phone call away. Our mission is to ensure that every person who leaves our office feels great about the Medicare plan they’ve chosen. We do that by explaining every step of the process, the rules that guide Medicare plans, and the “why” behind each choice.
Medicare is built with several parts, each with its own cost information. Generally speaking:
- Part A covers hospital stays, skilled nursing facilities, and hospice.
- Part B covers doctors’ fees and durable medical equipment (DME).
- Part C is a privatized combination of Part A, Part B, and usually Part D coverage. It’s called a Medicare Advantage plan. You can choose one of these private plans, but they have different rules for getting care, so you’ll want to choose carefully based on your needs.
- Part D is prescription drug coverage. Special rules apply to prescription drug coverage, you’ll want to read up on that below.
- A Medicare supplement plan (also called Medigap) is a private plan that provides additional coverage to lower the cost of deductibles and coinsurance from Medicare-provided plans.
Okay, now that you understand the basics about Medicare, let’s dive into your questions about what each Medicare plan will cost you.
How much are monthly Medicare Part A premiums?
Part A is premium-free for most people over age 65. If you have paid Medicare taxes for 10 years (translated to 40 quarters), you’ve earned your cost-free Part A plan by paying in all those years.
If you haven’t worked 10 years, you can still get Part A, however, you must pay a premium. If you’ve worked (and paid taxes) 30-39 quarters, the cost for Part A in 2020 is $252 per month. If you’ve worked less than 30 quarters, the monthly premium is $458.
It’s important to note that if you were a stay-at-home parent or had only one spouse working, these numbers apply to you too. If one person was working, use the number of years your spouse worked to figure out your premium.
Is there a deductible for Medicare Part A?
Medicare increases the deductible each year, and the 2020 deductible is $1408. Instead of calculating your deductible from a calendar year, it is figured based on a benefit period.
Benefit periods for Part A can be a little confusing, but they start when you first enter a hospital or skilled nursing facility. The benefit period ends 60 days after you have left the hospital/facility as long as you haven’t returned.
If you’re worried about paying the deductible, you can look into Medigap policies (supplemental coverage) that pay some of your out-of-pocket expenses.
What is the cost for Medicare Part A Coinsurance?
Coinsurance costs for Part A can get a little confusing too. Some situations that are taken into consideration:
- If you stay over 60 days;
- If you stay at a hospital before being transferred to a skilled nursing facility.
Talk to an agent to get specific information about Part A coinsurance. There are lots of rules, and you’ll want to be informed about each of them.
How much will Medicare Part B premiums cost me each month?
The cost for Medicare Part B in 2020 is $144.60 per month for most people. If your income is higher than $87,000 per year for single people, and $174,000 for married folks, you can expect to pay a surcharge (called IRMAA) based on your income.
What is the Medicare Part B deductible and coinsurance?
The deductible for Medicare Part B is $198. Once you hit this threshold, expect to pay 20% coinsurance on all of your doctor services and durable medical equipment.
Part B uses a yearly time-frame to restart your deductible calculations. It does not use the “Benefit Period” like Part A does.
How much does Medicare Part C cost per month?
Part C is also known as an Advantage Plan, and it combines Part A and Part B. It is offered by private insurers as an alternative to traditional Medicare. The premium costs for Advantage Plans vary widely. You can search for plans using the tool at the top of our homepage, or you can speak with us directly to compare plans based on your prescriptions and doctor preferences.
What is the cost for Medicare Part D premiums?
There are many different Part D plans you can choose from, with the national average being $32.74 depending on your needs. You can choose based on your prescription needs and what pharmacy you use. To see your options, give us a call or use our plan-finder tool.
Part D coverage is also included in some Medicare Advantage plans.
Your part D coverage premium may require extra payments, determined by your income tax statement from 2 years ago.
Hopefully, we’ve answered some of your questions about the price of Medicare and all the different plans. We know there are lots of policies and rules that can get a little confusing, so don’t ever hesitate to call us if you’re looking for help. That’s why we’re here.