Medicare FAQ #3
How Much Does Medicare Cost?
For individuals who are soon going to be eligible for Medicare, one important question that frequently comes up is this: how much does Medicare insurance cost? The answer to this question can vary because it depends on several factors. Let us take a closer look at those factors below.
Basic Costs of Medicare Insurance
There are several parts to Medicare, and each part has its own costs.
- Medicare Part A, which covers hospitalization and other inpatient services, is free for most people because they or their spouse have paid Medicare taxes while working for at least 10 years. However, if you have not paid enough Medicare taxes, you may have to pay a premium for Part A. There are also out of pocket costs associated with Part A assessed as a deductible or copay.
- Medicare Part B, which covers doctor visits, outpatient care, and some preventive services, has a monthly premium that is based on your income. The standard monthly premium for 2023 is $164.90 per month but that premium can be higher as it depends on your annual income. In addition to the monthly premium, you will also have an annual deductible of $226 for 2023. After meeting the deductible, Medicare will pay 80% of the cost of covered services, while you pay the remaining 20%.
- Medicare Part D is the prescription drug coverage portion of Medicare. The costs of Part D plans vary, depending on which plan you choose and your annual income. The average monthly premium for a Part D plan in 2023 is $38.80, but this can be higher or lower depending on your plan and your income.
Medicare Advantage Plans
Many people opt for a Medicare Advantage plan, which is a type of Medicare health plan offered by private insurance companies. These plans combine Parts A, B, and typically part D into a single plan. They often include additional benefits such as dental, vision, and hearing coverage. The costs of Medicare Advantage plans can vary widely depending on the plan and the company offering it.
Medigap Policies
Another option for people with Medicare is to purchase a Medigap policy, also known as a Medicare Supplement Insurance plan. These policies are sold by private insurance companies and are designed to cover the “gaps” in Medicare coverage, such as deductibles and copayments. The costs of Medigap policies can vary widely depending on the plan and the insurance company offering it.
The cost of Medicare insurance depends on several factors, including the specific parts of Medicare you choose to enroll in, your income, and any additional coverage you opt for. While Medicare can be an excellent resource for many people, it is important to carefully consider your options and costs before enrolling. Our agents here at VibrantUSA are available year-round to help you review your options and answer any questions you may have. Call us today at 866-733-5111. If you are looking for a full rundown on the basics of Medicare, we also offer a Medicare 101 online seminar twice a month. You can find the full schedule for those webinars here.
