- Medicare Costs and Expenses
HOW MUCH DOES MEDICARE COST
Table of Contents
Generally, how much you pay for Medicare depends on a few factors:
- Which Medicare plan you choose
- How often you go to the doctor or hospital
- Whether you have other health insurance
- Whether you qualify for help with Medicare costs.
Fortunately, it’s fairly easy to put together a Medicare cost estimate so that you can plan ahead.
Part A premium
A couple of factors determines the cost of your Medicare Part A premium. Medicare Part A is free if you:
- Have at least ten years of work in any job where you paid Social Security taxes in the U.S.
- Are eligible for Railroad Retirement benefits
- Or, have a spouse that qualifies for premium-free Part A
Individuals who aren’t eligible for premium-free Medicare Part A can still enroll in Part A.. If you buy Part A, you’ll pay up to $458 each month in 2020. The length of time you have paid Medicare taxes helps determine the cost of your Medicare Part A Premium
Need help calculating your Part A premiums? Connect with one of our agents today to explore your options!
Part A hospital inpatient deductible and coinsurance
- $1,408 deductible for each benefit period
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $352 coinsurance per day of each benefit period
- Days 91 and beyond: $704 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
Part B premium
Medicare Part B premiums are set by the federal government. While these premiums are standard for the year, your rate may change from year to year. If you are collecting Social Security, the monthly premium will be deducted from your monthly social security benefit.
The federal government sets the Part B monthly premium. The standard premium amount for Medicare Part B is $144.60 in 2020. However, If your income is above $87,000 you might pay a higher Part B premium. Income is determined based on your income tax returns from two years prior to enrolling.
Click here to learn more about Part B premium costs.
Part A hospital inpatient deductible and coinsurance
You’ll also be subject to an annual deductible. The deductible for 2020 has been set at $198. After your deductible has been met you’ll have to pay 20 percent of the cost for doctor visits and other outpatient services.