You can receive Medicare even if you’ve never worked. However, you may have to pay premiums to receive coverage. To qualify for Medicare you must either be receiving retirement benefits from Social Security or the Railroad Retirement Board, be 65 or older, or have a disability or End-Stage Renal Disease.
For most Medicare beneficiaries, Part A is premium-free. That benefit comes from having worked for at least 10 years (40 quarters) and having paid earnings taxes to the Federal Insurance Contributions Act, which funds Medicare. People who are under 65 and qualify for Medicare due to a disability are also given premium-free Part A, in most cases.
Who Qualifies for Premium-Free Part A?
The following people are eligible for premium-free Part A:
- People who worked for at least 10 years or 40 quarters and paid taxes to Social Security
- People whose spouses worked for at least 10 years or 40 quarters and paid taxes to Social Security
- People already receiving retirement benefits from Social Security or the Railroad Retirement Board at least four months before they turn 65
- People who are eligible for retirement benefits from Social Security or the Railroad Retirement Board but have not filed for them yet
- People who had Medicare-covered government employment
- People whose spouses had Medicare-covered government employment
- People who have received disability benefits from Social Security or the Railroad Retirement Board for at least 24 months
- People who have End-Stage Renal Disease and one of the following applies
- You have worked for at least 10 years or 40 quarters and paid taxes to Social Security
- You are already receiving or are eligible for Social Security or Railroad Retirement benefits
- You are the spouse or dependent of someone who meets the above requirements
Buying Medicare
You must be 65 or older and a U.S. citizen or lawful permanent resident of at least five years to get coverage with Medicare. If you do not qualify for premium-free Part A, you can purchase Part A and Part B with monthly premiums. You can choose to buy only Part A but if you want Part B you must buy both Part A and Part B.
Premiums for Part A are $259 each month for those who worked or whose spouse worked between 30 and 39 quarters while paying taxes to Social Security. If you have never worked and your spouse does not meet the threshold of 30 quarters (7.5 years) of working, you will pay full price for Part A. In 2021, the standard premium for Part A is $471 each month.
Everyone pays premiums for Part B, which is medical insurance. The standard Part B monthly premium in 2021 is $148.50. This cost is income-dependent, meaning that if you make more than $88,000 as an individual or $176,000 as a married couple, you will owe additional funds as an Income Related Monthly Adjustment Amount. The first income bracket above this amount pays an extra $12 each month to Medicare for their Part B coverage, and the costs increase from there.
We Can Help!
The Fussell Group Insurance Advisors team is here to provide all Medicare-related assistance, so if you need help determining your eligibility, give us a call today.