Choosing a Medicare plan that is right for you not only comes down to coverage but also to the budget you are looking to meet. That’s why it is crucial to understand what each part of Medicare costs, and also understand that prices can go up each year. This article will break down the monthly costs involved with Medicare.
Monthly Cost of Medicare Part A
Generally, Medicare Part A doesn’t need a monthly premium payment if the beneficiary or his/her spouse paid Medicare taxes while they work. As for those that are not automatically enrolled for Medicare Part A, you will need to purchase the plan and pay somewhere around $252 or $458 per month. This monthly premium and the amount you actually pay depends on the total number of quarters you worked.
Monthly Cost of Medicare Part B
According to the Social Security Act, the Medicare Part B premiums rate will be adjusted every year. As for 2020, Part B monthly premiums are higher than what was paid in 2019. For 2020, the average monthly premium for Medicare Part B is $144.60, which is an increase from $135.50 in 2019. The increase in Part B monthly premiums is mainly due to the growing spending on physician-administered drugs.
Monthly Cost of Medicare Advantage
On average, Medicare Advantage, also known as the Medicare Part C plan, will have around a $30 monthly premium. However, because private insurers offer them, the costs will always vary. For some, other Medicare Part C plans have a $0 premium. With that said, the exact amount you pay for Medicare Part C will depend on the plan and insurer you choose.
Monthly Cost of Medicare Part D
Since private insurance firms provide Medicare Part D plans, the monthly premium varies depending on the plan and insurer you choose. Moreover, your monthly premiums also depend on your income. Medicare beneficiaries with higher incomes pay more monthly premiums for Part D. Having said that, you can find Part D plans around $10 to $15 per month in most states.
At Turning 65 Solutions, our experienced Medicare experts can help you determine your potential Medicare costs. Our experts can also help you plan for what Medicare will cost you in 2021. Call us today; a licensed insurance agent on our team will help you.