Elementor #1011
WHAT’S NEW FOR MEDICARE DRUG PLANS IN 2024? Medicare’s open enrollment period is officially in full swing!
October 9, 2023
Costs of Medicare
Medicare costs are highly dependent on the year, your income, and your plan. This can make estimating your cost very frustrating. Below are some breakdowns of the overall cost and the costs you can expect to pay for each part of Medicare.
Part A Costs
Most people do not have to pay a monthly premium for Part A at all. However, if you did not pay taxes for 40 quarters and receive 40 credits, you will have to pay a monthly premium for Part A. For those who decide to purchase Part A, you are expected to pay $458 each month in 2020 if you paid less than 30 quarters for Medicare taxes. If you paid Medicare taxes for 30-39 quarters, the standard Part A monthly premium is $252.
- Inpatient care costs: Your annual deductible is $1408 with co-insurance for days 1-60 of each benefit period. For days 61-90 of an inpatient stay, your cost of co-insurance per day is $352. After day 90, you pay a lifetime reserve day of $704.
- Skilled Nursing Facility (SNF) costs: There is no cost for the first 20 days of your stay at an SNF facility. For days 21-100, your coinsurance costs $176 per day. You assume all costs for days 101 and after.
- Home health services: You pay 20% for durable medical equipment. The Part B deductible applies for home health services.
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Part B Costs
You are responsible for a monthly premium for Part B. The standard part B monthly premium is $144.60 in 2020. This premium changes every year. In addition to the premium, you are subject to a deductible under Part B. In 2020, the deductible for part B was $198. After you meet your deductible, Medicare generally covers 80% of the cost and you cover 20%.
With Original Medicare, there is no limit on your out of pocket expenses with Part B. With Part B Medicare Advantage Plans, there is a yearly limit of your costs.
Part C and D Costs
The monthly premium for a Medicare Advantage Plan, or Part C, is highly variable depending on the plan.
The cost of Part D depends on the plan. If you have Original Medicare, this monthly premium is in addition to the premium for Part B. If you have a Medicare Advantage Plan, your monthly premium may already include the premium for prescription drug coverage.
Some Part D plans do not have a yearly deductible and the amount you pay for copayment or coinsurance depends on the drug’s total cost.
Key Takeaways
The total cost of Medicare is highly dependent on the plan. Using the above estimates and the Medicare cost estimators, you can budget for your monthly and yearly out-of-pocket costs.
