Thursday, August 23, 2018

How Does Medicare Work? How Much Does it Cost?

Medicare premium costs for Part A are "prepaid". Most people have qualified for "free Part A coverage based on past Social Security earnings. Medicare Part B standard premiums in 2018 are $134. If your MAGI is above the threshold you may owe a tax in addition to your Part B Medicare premiums. This tax is an IRMAA tax.

Medicare Premium Costs

In addition to your Medicare premiums, you may incur additional costs for supplemental coverage, prescription drug plan or a Medicare Advantage plan.

Most people pay nothing for Medicare Part A if they have at least 30 quarters of earned income and paid Medicare taxes on those earnings.

Popular Georgia Medicare supplement plan premiums start around $100 per month in 2018. Popular GA Medigap plans limit your out of pocket expenses to the Medicare Part B deductible ($183 in 2018).

Other Premium Costs

Medicare Part D monthly premiums are as low as $12 in 2018.

Many people do not pay a monthly premium for Advantage plans but that does not mean they are "free". If you select an Advantage plan you will need to budget for planned and unplanned out of pocket health care expenses. Outpatient care may incur copay's starting at $10 while some procedures may run $100 or more. Hospital inpatient care imposes a daily copay of several hundred dollars for a specific number of days.

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