How Much Will Medicare Cost Me?
A lot of folks are confused as to how much they will have to pay for Medicare. Let’s start with the Medicare Part A.
Medicare Part A, also known as “Hospital Coverage” is “free” for most people. If you have worked for at least 10 years in your life and paid Medicare taxes to the goverment during those years then you have already paid for Part A and will not be charged a premium when you go onto Medicare. In addition, if you are collecting social security benefits when you turn 65 you will be automatically signed up for Medicare Part A.
If you did not pay enough taxes then you will get billed for Part A in addition to Part B.
How Much Will I Pay For Medicare Part B?
The answer can be found by refer the income chart provided by Medicare below. The original chart can be found on Medicare.gov site here.
As you can see in the chart above, Medicare uses the 2014 tax year for 2016. If you earned over $85,000 as an individual or $170,000 as a couple you are required to pay $170.50 per month for your Part B premium. This is $48.70 more than the standard amount of $121.80 per month, that most folks pay.
The Part B premium is not to be confused with the Part B deductible which is is the amount of you out-of-pocket after seeing a doctor. This deductible is covered 100% by Plan F. Plans G and N do not cover the Part B deductible but Plan G is often a better option than Plan F for reasons outlined here.
How Much Does Will A Plan Cost?
Depending on what Medigap plan you choose you will pay anywhere between $85-$150 per month, depending on where you live. This will provide you with nearly 100% coverage, protecting you against the high medical costs that come with just having Original Medicare and no plan. Before you choose a plan it is important to compare rates. Contact me at 800-208-4974 for a free rate comparison.
Additionally a Medicare Part D drug plan will cost between $18-$35 per month in premium. This plan is independent from you Medicare supplement plan and is designed to help pay for the costs of your prescription medications.
Total Monthly Cost
Most people will pay $121.80 (Part B premium) + $120 (Medigap premium) + $20 (Part D premium) = $260ish per month for full Medical coverage. This number will vary depending on location, income and what carrier you buy your Medigap plan from. Because the Medigap plans are standardized there is a wide range in pricing for the same exact plans. Contact me for a free quote to ensure you don’t end up overpaying.
- Most folks will pay $121.80 per month for Medicare Part B.
- Most folks won’t pay a premium for Part A.
- The Part B deductible is $183 per year and is usually paid after a doctor visit, unless you have a Medigap plan that covers it.
- You will be automatically enrolled onto Part A if you are collecting SS benefits when you turn 65.
- A Medigap plan will cost between $85 – $150 per month.
Questions? Call me at 800-208-4974, I will be happy to assist you!