If you are soon to be eligible for Medicare benefits, you may be concerned about the cost of Medicare coverage. Although Part A of Original Medicare can be acquired premium-free for individuals who have paid adequately into the U.S. tax system, this option is not available for everyone. Furthermore, Part B of Original Medicare always requires premium payments. The cost of Medicare coverage varies for different beneficiaries, keep reading to learn the costs of Medicare.
Original Medicare Costs
The standard Medicare plan, Original Medicare, consists of two separate components, Parts A and B. Part A can be acquired at no cost if you meet certain criteria, but if you don’t you will need to pay a standard premium. Part A premiums vary based on how many quarters you paid Medicare taxes. In 2020, Medicare applicants who paid less than 30 quarters worth of Medicare taxes had to pay $458 for Medicare Part A. Those who paid 30-39 quarters worth of Medicare taxes paid $252 premiums. With Part A insurance, you will also be required to pay deductibles and coinsurance in some cases. In 2020, the Part A deductible was $1,408 for each benefit period.
Part B medical insurance cannot be acquired for free and applicants must pay a premium to maintain coverage. In 2020, the Part B premium was $144.60. Deductibles and coinsurance also apply in most cases. The Part B deductible was $198 in 2020 and the coinsurance is 20% of the total cost of care for most health care services.
Prescription Drug Coverage Costs
Original Medicare plans do not include prescription drug coverage. In order to receive drug coverage, you will need to apply for Medicare Part D, which is the prescription drug component of the Medicare program. Part D coverage is rarely available premium free and often has a deductible that must be paid out-of-pocket as well. In 2020, the highest deductible Part D plans were allowed to offer was $435. Some policies don’t charge any deductible at all, but $0 deductible plans are usually best only when they will allow a low overall annual cost.
Prescription drug plans also have copay and coinsurance costs that are associated with the medicine you will be taking. To determine how much your Medicare Part D coverage will cost, review your preferred policy with a specialist. They can help you choose a Part D plan that allows you to access the medicine you need affordably.
Find A Medicare Policy
If you are looking for a Medicare policy, get help from qualified professionals. The Fussell Group team is ready to help, whenever you need us. Reach out to us now for more information regarding the costs of Medicare.