Myth Vs. Fact #1
Medicare Costs the Same for Everybody.
No! This is a myth on many levels. Let’s take a look at the various ways Medicare costs can differ.
Most people don’t pay a monthly premium for Part A, so long as you or your spouse worked 40 quarters (10 years) in the United States and paid into Medicare taxes. If you buy Part A, you’ll pay up to $499 each month in 2022. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $499. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $274.
The standard Part B premium amount in 2022 is $170.10. However, this can be higher based on your income. Part B premiums are based on modified adjusted gross income as reported on taxes from 2 years ago. This is called an income related monthly adjustment amount or commonly referred to as IRMAA. Income is determined by your tax filing from 2 years ago, so for 2022 they will look at your 2020 taxes. If you file jointly and made 182,000 dollars or less or file individually and made 91,000 dollars or less, you will pay what is considered the “normal” monthly premium which is currently $170.10. This chart below outlines associated Part B premiums.
The Part D monthly premium varies by the plan in which you choose to enroll in. Again, higher income earners may be subject to higher premiums based on their modified adjusted gross income. If you file jointly and made 182,000 dollars or less or file individually and made 91,000 dollars or less, you will pay only the premium of whichever plan you choose. However, if you make more, you will be charged your drug plan’s premium, plus an additional $12.40 a month and so on as the chart progresses.
Medicare beneficiaries often elect optional coverage such as a Medicare Advantage Plan, Supplement Plan, or Prescription drug Plan. The exact amount you pay depends on the coverage you elect. Factors that can influence cost can include coverage levels, where you reside, and type of coverage.