What Does Medicare Cost

Medicare Part A:  Most people will will receive this at no cost.  If you're 65 and over and eligible for Social Security, Railroad Retirement or civil service retirement, or dependents or survivors benefits, you're also eligible for Medicare Part A without having to pay a premium.  If you do not have enough work history, meaning you have not paid enough quarters of Medicare taxes, you will have to pay a monthly premium for Part A.

Medicare Part B:  Everyone pays a monthly premium.  Most people will pay the standard premium amount.  However, if your modified adjusted gross income as reported on your IRS tax return from two years ago is above a certain amount, you pay an Income Related Monthly Adjustment Amount (IRMAA).  IRMAA is an extra charge added to your premium.

Medicare Part D:  Is the Medicare-regulated prescription drug program.  Part D drug plans are sold by private insurance companies and cost depend on the coverage, formulary, and the medications which you are taking. 

Peter Madine - Financial Consultation
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  Here are some costs associated with Medicare:
   

Part B Premiums by Income

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Note: In 2014, there may be limits on physical therapy, occupational therapy, and speech language pathology services.  If so, there may be exeptions to these limits. 

 

Medicare Part A
If you have to purchase Part A, you'll pay up to $426.00 per month.  Most people receive Part A premium-free.  You can get premium-free Part A at 65 if:

  • You already get retirement benefits from Social Secuirty.
  • You're eligible to get Social Security benefits but haven't filed for them yet.
  • You or your spoiuse had Medicare-covered governement employement.

If you are under 65, you can get premium-free Part A if:

  • You received Social Secuirty disability benefits for 24 months.
  • You have End-Stage Renal Disease (ESRD) and meet certain requirements.

Medicare Part B

  • Most people pay the Part B premium of $104.90 each month.
  • You pay $147 per year for your Part B deductible.
  • Some people automatically receive Part B.
  • If you don't sign up for Part B when you are first eligible, you may have to pay a late enrollment penalty.
  • If your modified adjusted gross income as reported on your IRS tax return from two years ago is above a certain amount, you may pay more.
  • The amount you pay can change each year depending on your income.