Understanding Where Medicare Premiums Come From
When you first become eligible for Medicare at the age of 65 or through disability or illness, you may find yourself immediately wondering how much it is going to cost you – and with so many private providers offering you add-ons and supplement plans, it is not hard to lose your way and forget what the most basic benefits and costs of Medicare include.
Most people will be aware upon signing up for Medicare that no matter what plan they join, they will not receive complete coverage or care without additional cost. Whether that cost comes in the form of deductibles, copayments, or premiums can vary – but in this article, we will be looking a little more closely at premiums.
Your Medicare Premiums are essentially the monthly payments that provide you with the full level of coverage that you decide you need. For the most part, Medicare Part A is available for those who have paid full taxes without any premium. It is only when you start adding other plans and coverage clauses that the premiums begin to stack up.
What makes you Eligible for Premium-Free Part A Coverage?
For those looking to reduce their Medicare Premiums, by far the simplest way to keep costs down is to sign up for the Medicare Part A plan – provided you or your spouse paid the correct taxes for a certain period of time prior to becoming eligible for Medicare. Those who do not meet this most basic condition will have to pay a premium even on Part A coverage.
Other conditions for eligibility include:
- You already receive retirement benefits from Social Security
- You get Social Security disability benefits
- You have End-Stage Renal Disease
If you find that you have to buy Part A Medicare coverage due to non-eligibility, you will likely also find that you must be covered with Part B Medicare support as well. So, what does that mean for your premiums?
How to Reduce Medicare Premiums Across Other Plans
Aside from Part A Medicare coverage, all the other plans and packages come equipped with Premiums – and these are generally determined by your income and expenses, taking into account the sum of your wage income, capital gains, investment dividends, Social Security, and your pension. Thus, the more you earn and the more money you have, it follows that you can expect to pay more in terms of your Medicare Premiums.
Understanding exactly what you are going to be expected to pay, and knowing how to keep costs down, can turn into a minefield of information if you don’t know where to look. Our team at Bobby Brock Insurance are happy to help at any time, with our website packed full of information designed to assist you in making your decision.