At the Medicare Coach, we frequently get asked how much Medicare is going to cost.
The cost of Medicare can vary because it depends on many factors like:
- Your income.
- Whether you pick Original Medicare or Medicare Advantage.
- Medications you take.
- Where you live.
With that said, let me give you a simplified breakdown of what Medicare can cost.
Now first, there’s Medicare Part A and Medicare Part B costs.
Everyone is subject to Medicare Part A and B costs unless you qualify for financial aid.
Medicare Part A, which is your hospital insurance, costs $437 a month for 2019.
However, if you or your spouse have 40 qualifying quarters, you won’t pay anything for your Medicare Part A premiums. That means, most of you won’t pay anything for Medicare Part A premiums because you do meet those requirements.
However, please be aware that Medicare Part A does have some deductibles if you need those services.
Now with Medicare Part B, which is your doctor’s insurance, costs $135.50 a month in 2019, and while the majority of you will pay this amount, there are a few of you who will get financial aid to reduce the cost.
It’s important to note that if you have a higher income, you will pay more for Medicare Part B.
That means, based on your taxes, if your Modified Adjust Gross Income (MAGI) is $85,000 or more as an individual or $170,000 or more as a couple, you will pay more for Medicare Part B.
The good news is, many people can appeal this, and we help our clients with those appeals all the time.
Also be aware that if you’re leaving an employer plan and you’re taking a big payout, that could impact what you pay for Medicare. If you fall into this category, we can provide you some guidance as to what to look at and how to understand the rules of how they work.
Additionally, there are other amounts that you will pay for Medicare depending on the program that you pick.
That means if you pick Original Medicare, you will also likely get a Medicare Supplement Plan and a Medicare Part D Drug Plan.
Supplement plans usually range around $30 a month to $200 a month in most states. Some states will be higher because they have unique rules.
Medicare Part D Drug Plans have premiums as low as $10 or $15 a month, but they also come with co-pays, deductibles, and things like that. So, depending on your medications, you could pay more than that.
If you go the Medicare Advantage route, you will have a range of plans to pick from, and the premiums will start as low as $0 a month. However, when you look at Medicare Advantage plans, pay close attention to the co-pays, the deductibles and, the max out of pockets. Also, look at other rules. For example, if you need to get chemotherapy, how much of that plan covers that cost?
With all of this said, while there are standard amounts for the cost of Medicare, the total price that you pay for Medicare coverage is based on the plan that you pick, your health conditions, the medications that you’re on, where you live, and things like that.
Medicare is complicated, and too many people make the wrong Medicare decision, which is jeopardizing their health care, as well as their savings. This is why so many people turn to The Medicare Coach.
To easily make the right Medicare decision, you can CLICK HERE to sign up for our Medicare Enrollment Concierge.
