What does Medicare Cost?
When asking the question what does Medicare cost one needs to look at two issues.
What do I pay when I use Medicare and what does Medicare cost me in Medicare premiums?
The monthly premiums for Medicare Part A and Part B
All Tax paying Americans receive Pat A when they turn age 65. Part A is referred to as “Hospital
Insurance”. You must elect part B (Medical Insurance).
There is a cost for Part B insurance.Medicare will bill you for the amount. Your cost is based on income. Please see below.
(Pricing illustrations are from www.medicare.gov 2017)
|File Individual Tax Return||File Joint Return||File Married and Separate Tax Returns||Part B you Pay in 2017||Part D you pay 2017|
|$85,000 or less||$170,000 or less||$85,000 or less||$134.0||plan premium|
|Above $85K up to $170K||Above $107 K up to $214 K||NA||$187.50||$13.30 +Plan Premium|
|Above $107 K up to $214 K||Above $214 K up to $320K||NA||$267.90||$34.20+Plan Premium|
|Above $160 K up to $214 K||Above $320 K up to $428 K||Above $85 K up to $129K||$348.30||$55.20+Plan Premium|
|Above $214 K||Above $428 K||Above $129 K||$428.60||$76.20 + plan
The monthly premiums for Part D (Prescription Drug Coverage)
You have the option to elect Part D coverage. Medicare Part D Plans vary in cost and coverage by State. A number of vendors offer a selection of Part D benefits.
When I have Medicare Part A and Part B what do I pay
The Social Security Administration sets the Medicare deductibles, daily coinsurance amounts, and out-of-pocket expense limits for cost-sharing plans. Deductibles and coinsurance amounts are not covered by Medicare; the Medicare supplement contract you choose, however, may cover them. The following
chart shows the Medicare deductibles and coinsurance amounts for 2015 and 2016.
(Illustrations are taken from www.medicare.gov 2016)
What you pay for Medicare in 2017
Part A Deductible $1316
Daily Hospital Coinsurance 61st-90th day $329/day
Daily Hospital Coinsurance 91st-150th day $658/day
Daily Skilled Nursing Facility Coinsurance $161
Part B Calendar-Year-Deductible $183
Part B Coinsurance 20% Doctor Services
Deductible for High-Deductible Plans $2200