If you’re approaching Medicare eligibility, it’s essential to understand the costs for each of the different parts of Medicare, so you can work out how much to budget. Unfortunately, many people don’t realize the costs associated with certain aspects of Medicare, which can make it difficult to manage your monthly bills.
Understanding those costs and what these costs provide coverage for is essential when deciding on the right health plan for your needs. At Health Plans of NC, we specialize in assisting residents of North Carolina with all their Medicare and health insurance needs. If you’re asking yourself ‘How much does Medicare cost?’ get in touch with us today. Our Medicare agents can consider your circumstances and provide you with a quote for a plan that suits you.
Medicare Part A Cost
If you or your spouse has worked for 10 years anywhere in the US, you won’t have to pay anything for Medicare Part A premiums after you turn 65.
If you haven’t worked for 10 years, you’ll need to pay premiums to access Medicare Part A. The monthly cost is around $499 each month. You can purchase this if you have been a legal resident or a green card holder for a minimum of five years. You also need to enroll in Medicare Part B.
If you need to stay in the hospital, you’ll need to pay a $1,556 deductible for each benefit period. If you’ve got a Medigap plan, your plan may cover this cost. Contact one of our NC Medicare agents to find out more.
Cost of Medicare Part B
The cost for your Medicare Part B varies depending on your household income. To find out how much you’ll pay for Part B, the Social Security office looks at your IRS tax return from two years ago. Then, they base their assessment on what’s known as your modified adjusted gross income (MAGI). Several items contribute to this amount, including your wages, interest earned, dividends from investments, capital gains, tax-deferred pensions, or social security benefits.
If you jointly file your taxes with your spouse, Social Security will work out your premiums based on your married income. Your premiums, however, won’t combine. Instead, these will come to you individually.
For an average North Carolina resident, the standard monthly premium for Medicare Part B is $170.10. However, this amount can be higher depending on your income. If you receive Social Security benefits, your premium will be deducted from your monthly benefit payment. In 2022, the Part B deductible is $233.
If your individual income is over $91,000 per year, your premium will be higher than the standard amount of $170.10 each month. The amount ranges from $238.10 per month to $578.30 per month, depending on how much you earn each year.
Expect to be contacted by Social Security in December or January each year with details of your premium amount for the upcoming year.
Medicare Part D Cost
How much you pay each month for Medicare depends on how much you earn, which Medicare plan you have, and if you have any supplementary coverage. For example, you may pay a Part B premium of $170.01, a Medigap Plan G premium of $98 per month, and a Part D premium of $30 each month. So this means you’ll pay a total of $298.10 each month in premiums. However, you’re likely to experience little out-of-pocket costs because your Plan G Medigap plan provides coverage for many health costs.
If you need any help choosing the right combination for your budget and health, get in touch with one of our Charlotte Medicare agents today. We can talk through all the different parts of Medicare, including costs, to help find the right option for you.
Confused about Medicare costs?
Understanding each type of Medicare cost can be overwhelming. There are a lot of variations and the cost of premiums depends on your circumstances. Medicare premiums generally increase each year, and our team of Medicare agents are up to date with all the latest costs and coverage details of different plans. We can help you decide on the right plan for your needs and answer all your questions about Medicare cost 2022. Compare plans online or contact us today.