Costs of Medicare

If you are comparing Medicare costs, it is good to know what you can expect to pay for your total Medicare health coverage. Expenses include premiums for Original Medicare, private secondary insurance and/or a part D drug plan and any possible copays, coinsurance, and deductibles. Whether you enroll in a zero premium Medicare Advantage plan or decide to purchase additional secondary coverage with a Medigap policy and/or a drug plan you are required to purchase and maintain Medicare Part B coverage.

By knowing Original Medicare Part B is a fixed expense to receive any Medicare benefits will help you determine which option ideally fits your needs and allows you to forecast and budget your health care expenses accordingly. If you are curious about learning more about the costs of Medicare, stay on this page.

Original Medicare Costs

If you enroll in Medicare, you will have the option to join Medicare Part A – Hospital and or Medicare Part B – Medical. Most beneficiaries enroll in both parts thereby receiving what is referred to as Original Medicare. You may be subject to possible late enrollment fees if you elect to forgo Medicare Part B when you do not have creditable health insurance coverage through an employer or certain government agencies.

If you have creditable coverage through work or a spouse employment you may delay your Medicare Part B without incurring any late enrollment fees. When your creditable health insurance ends and you enroll in Medicare Part B coverage you will have a 63-day window of time to select a Medicare plan under the Special Enrollment Period.  Even though there is no requirement to enroll in both parts you may want to consider this as you cannot enroll in a Medicare Supplement plan or a Medicare Part C Advantage plan without Original Medicare.

In most cases, Medicare Part A is the most affordable component of Original Medicare because you can get Part A benefits premium-free. To receive Part A coverage free, you must have paid into Medicare taxes for at least ten years or 40 quarter hours. If you have not met this requirement, you will need to pay the full premium for Part A coverage. In 2021, the premium is $471 per month when you or your spouse are without any credits on file paid into Medicare. There is a deductible of $1484 per hospital benefit period with copays after 60 days starting at $371 per day from day 61- 90 and $742 per day from days 91-150.

Skilled nursing’s first 20 days are paid at no cost provided you were admitted to a hospital for a minimum of 3 days. Additional skilled nursing care from the 21-100 days has a responsibility copay of $185.50 per day.

Medicare part B has a traditional standard premium starting at $148.50 per month and is adjusted for higher incomes. See the IRMA Income-Related Monthly Adjustment   There is also a Medicare Part B annual deductible $203 for 2021, that must be met before Medicare will pay 80% of the medical cost and you are responsible for 20%.

One major drawback to having Original Medicare and no additional or secondary insurance is there is no maximum amount of financial responsibility in any one given year a person could be liable for. This exposure could put an individual into medical bankruptcy and gives good reason to consider a Medicare Supplement policy or Medicare Advantage plan. 

Medicare Advantage Costs

Medicare Advantage plans or Part C plans are county specific. To determine county availability and plan costs you should speak to a qualified Medicare professional who represents more than one company and has the ability to look up individual medications to determine the most appropriate plan for your needs. They should be familiar with all product offerings in your area and can help you find the best value based on your current unique situation. Call the Iowa Medicare Group today. We are a national company wanting to help you with your Medicare plan needs. Call for your personal interview.

Compare Medicare Plan Premium Costs

Original Medicare has standard costs that cannot be changed. However, you have choices on how you wish to receive your Medicare insurance plan coverage. Choices are a Medigap policy as a secondary to Original Medicare, Medigap Policy with a standalone Drug Plan, Standalone Drug Plans with Original Medicare or Medicare Advantage plans PPO, HMO, Private Fee for Service or Costs plans. You get to choose the type of coverage and the premium if any you are willing to pay.

Rarely is the lowest cost Medicare Supplement policy the best value. Other considerations would be benefits covered, company historical rate increases, and length of time the company has offered Medicare supplement policies. Many Medicare Advantage Part C plans offer zero plan premium with other benefits. You must compare Medicare Advantage plans that offer a zero premium against plan benefits of those who charge an additional premium whether a small monthly premium or not to determine the best value for you as the beneficiary.