The U.S. government established Medicare to provide older Americans with affordable healthcare. It is also available for citizens who suffer from specific disabilities, such as End-stage Renal Disease or amyotrophic lateral sclerosis (ALS). If you will be eligible for Medicare soon, you may be concerned about how much it will cost you to maintain your coverage. These are the current costs of Medicare.
Medicare Part A Costs
The first component of Medicare can sometimes be obtained without premiums, depending on the applicant’s eligibility. For example, people who have had Medicare-covered government employment are often eligible for premium-free Part A. Consult with an insurance specialist to determine whether you qualify for premium-free Part A benefits.
If you do not qualify for premium-free coverage, Medicare Part A is also available for purchase. In 2020, Part A benefits cost up to $458 per month, with buyers who paid more Medicare taxes paying as little as $252. Although you can purchase Part A coverage, you will likely be required to also hold Part B coverage to maintain your plan.
Medicare Part B Costs
Medicare Part B does not have a premium-free option; therefore, all recipients must pay to uphold their coverage. If someone receives social security, railroad retirement board, or office of personnel management benefits, their Part B premiums will be automatically deducted from their benefit payment.
The standard Part B premium amount in 2020 is $144.60, but people who meet certain income thresholds may be required to pay more. In addition to these monthly premiums, recipients will also be required to pay deductibles and coinsurance for approved services. In 2020 the Part B deductible was set at $198, and you can expect to pay 20% of the cost for most doctor services, outpatient therapy services, and durable medical equipment.
Medicare Advantage Costs
The cost for Medicare Advantage plans are not as standardized as Original Medicare (Part A and Part B) costs. This is because Medicare Advantage plans are provided by private insurance companies that have contracted with Medicare, rather than Medicare itself. Advantage plans have varying costs, depending on their network, benefits structure, and other policy specifics. If you are shopping for a Medicare Advantage plan, an insurance agent can help you find an affordable plan that offers you the benefits you need.
Shop For Medicare
If you are in the market for a new Medicare policy or you need to update your current plan, Midwest Medigap can help you. Our team of Medicare professionals can help you find the policy you are looking for. Contact us now for more information and a free quote.
