When you’re aging into Medicare, you might wonder, “What is the Cost of Medicare Part A and B?”
Some don’t realize that there are some serious out-of-pocket expenses that can come from Medicare.
So, we’re going to break down how much each of these can set you back as well as a way to lower, if not eliminate, most of these coinsurance and deductibles.
What is the Cost of Medicare Part A?
Medicare Part A, for most, has no monthly premium. If you have worked at least 10 years, there are specific taxes you paid to cover your Part A premium.
If you didn’t work for 10 years and have to pay a premium for Medicare Part A, here is how your cost is determined in 2020:
- Paid Medicare taxes for less than 30 quarters — $458 per month
- Paid Medicare taxes for 30-39 quarters — $252 per month
Of course, there is also a deductible involved. In 2020 Medicare Part A’s deductible is $1,408.
You are also responsible for co-payments. How much cost-sharing is involved will depend on the number of days you spend in the hospital:
- Days 1-60: $0 coinsurance for each benefit period
- 61-90: $352 coinsurance per day of each benefit period
- Day 91 and beyond: $704 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
What is the cost for Medicare Part B?
Medicare Part B’s premium is $144.60 or higher depending on your income.
If you make more than $87,000 or if you filed a joint return and reported above $174,000 in total earnings, check Medicare’s website to see what your premium would be.
Part B also has a deductible of $198 in 2020.
Then, you typically pay 20% of the Medicare-approved amount for most doctor services. Depending on which state you live in, doctors may be able to charge what is called “excess charges” as well.
Medicare Supplements take the cost-sharing off your plate
Medicare Supplements, also known as Medigap policies, are sold by private insurance companies to help you cover the out-of-pocket costs left behind by Medicare.
When you have a Medigap policy, Medicare pays it limit on your medical expenses. Then, your Medicare Supplement plan kicks in coverage depending on the plan you select.
Some of these plans cover 100% of most of your coinsurance responsibilities.
You can enroll in a plan once your Part B plan is active.
Give us a call at (662) 844-3300 to learn more about these plans or you can send us a message here and one of our licensed Medicare insurance agents will respond quickly.