There are several variables that affect what you pay for Medicare.
As you know, there are several components of Medicare, so let’s try to break down the cost of each:
Medicare Part A Costs
Premium: Most people don’t have to pay premiums for Part A (assuming you or your spouse paid Medicare taxes while working).
Deductible and co-insurance for healthcare:
- $1,316 deductible for each benefit period
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $329 coinsurance per day of each benefit period
- Days 91 and beyond: $658 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
Medicare Part B Costs
Premium: The standard Part B premium is $134/month. If your income exceeds certain thresholds, your premium could be higher. On the other hand, most people who receive Social Security benefits pay less – the average is $109/month. Social Security will tell you the exact amount of your monthly Medicare Part B premium.
Deductible and co-insurance for healthcare: The Part B deductible is $183 for the year. After paying your deductible you typically pay 20% coinsurance (meaning you pay 20% for covered services).
Medicare Part D Costs
Because Original Medicare (the name given to the combination of Part A and Part B) doesn’t include prescription drug benefits, Medicare Part D was introduced to provide drug coverage.
Medicare Part D plans are provided by private insurance companies, so the prices vary. In most cases you can find a plan between $20 and $50, give or take. You’ll want to find out if your prescriptions are covered by a particular Part D plan, and if your pharmacy is in the network.
We put together a step-by-step guide that will help you get the right Medicare Part D plan.
Medicare Supplement Costs
A Medicare Supplement plan will pay many of the deductible and co-insurance costs associated with Medicare Parts A and B. (Plan F pays all of them).
The cost of a Medicare Supplement plan will vary based on which plan you select and what company you buy it from. Medicare supplement plans are priced by age, gender, and state. Some companies offer household discounts if both you and your spouse buy a plan.
The most popular Medicare Supplement plan by far is Plan F. Prices vary pretty widely (and there are often good reasons not to buy the cheapest plan), but a lot of our clients pay in the range of $125-$150 monthly for Plan F.
We’ll be happy to show you prices for Medicare supplement plans. Just contact us: