Avoid Overspending During the Holidays
It is not surprising that the holiday season is one of the most expensive for individuals. Giftgiving,
November 23, 2020
Medicare Cost for Part A in 2020
For most people, the cost for Medicare Part A is typically zero. In fact, 99% of Medicare beneficiaries qualify for free Part A. If you have worked 10 years or longer in the U.S., you have already paid for Medicare Part A through payroll taxes.
If you have to purchase Part A, the cost will be about $460/month. Depending on your work experience, a pro-rated premium may be available. Eligibility for buying Part A looks like this: you must have had a green card or been a legal resident for a minimum of five years.
If you have a hospital stay in 2020, your Part A deductible will be $1,408. However, if you have a Medigap plan, it will probably cover this cost.
Medicare Cost for Part B in 2020
Most Medicare beneficiaries pay the standard Part B premium, which is $144.60 in 2020. Medicare Part B premiums are based on your household income. Having a higher income means you pay more.
The Social Security office will use your IRS tax return from two years prior to decide what you’ll pay for Parts B and D.
The following items contribute to your modified adjusted gross income (MAGI):
- Money earned through wages
- Interest
- Capital gains
- Required minimum dividends from investments
- Social Security benefits
- Tax-deferred pensions
If you filed with a spouse, Social Security will establish premiums for each of you based on your married income. But you will each pay your own Part B premium. Your Part B premiums are not combined. Social Security uses your household income to decide where you land individually in the premiums chart. Social Security will typically inform you of your next year’s premium each year in December or early January by mail.
For 2020, the Medicare Part B deductible is $198.
How Much Does Medicare Cost Per Month?
The amount that you’ll pay each month will vary, depending on your income and the type of supplemental coverage you select. For example, with the base Part B premium of $144.60/month plus a Part D premium of $27.50/month plus a Medigap Plan G monthly premium of $125/month, your sum would be $297.10/month in premiums. In this particular example, you would have minimum additional out-of-pocket spending since Plan G would acquire the majority of your out-of-pocket expenses.
When it comes to Medicare plans, you have many different options to choose from so that your monthly premium can align within your budget.
