How Much is Your Medicare Premium?

While Medicare is a government-run initiative that is meant to help you with your medical expenses, you will have to pay for some of the services. There are premiums, deductibles and copayments involved in your Medicare insurance coverage.

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Medicare Part A Premiums

For Medicare Part A Plans, most people do not have to pay Part A premiums because Medicare taxes have been deducted from their salaries during employment.

Individuals who have not paid Medicare taxes, could pay up to around $460 a month towards the Medicare premium. If you have been penalized for late enrollment, this amount will be higher.

It is important to enroll for Medicare on time to avoid late enrollment fees.

Medicare Part B Premiums

Medicare Part B premiums are determined on income taxes that are filed two years prior to receiving Medicare coverage and are based on annual incomes.

For example, if your annual income in 2008 was below $85,000, then you will pay a monthly premium around $110. The next income bracket goes up to $107,000 and requires Medicare recipients to pay around $154 a month.

Premiums are based on individual tax returns and have to be doubled if you are filing a joint tax return.

Premiums on Medicare Advantage and Prescription Drug Plans

Since Medicare Medicare Advantage (Part C) and Medicare prescription drug plans (Part D) are run by private insurance companies, there are no fixed premium rates. Different insurance companies will charge premiums based on the benefits provided by the Medicare policy.

Covering Out-of-Pocket Expenses with Medigap Plans

The federal government introduced Medigap, a set of Medicare-approved Medicare Supplement plans. Depending on the Medigap plan you select, the health insurance company may cover your deductibles, copayments and coinsurance requirements.

For more information about your Medicare Advantage and Medigap options, get quotes at GoMedicare.com.

Get your Medicare plan quotes today!