A question from a reader about Medicare premiums
Today I received a question in Facebook that was very simple I realized I probably do not answer it enough in my blog.
A gentleman named Larry asked “How are Medicare rates calculated”.
The following was my answer”
There are 4 parts to Medicare.
Medicare Part A covers you of you are in the hospital as an in-patient or in skilled nursing for rehabilitation. There is no monthly premium for Medicare Part A.
Medicare Part B covers you for just about all other health care services that are not covered in Medicare Part A such as doctor visits, outpatient services, x-rays, labs, MRIs, physical therapy and some medications if they are administered in a medical facility such as injections for Arthritis.
Medicare Part B has a monthly premium for most people of $134 but some people pay more if their income is above a certain level.
Medicare Part A and Part B together cover around 80 percent of your health care costs leaving you initially responsible for the remaining 20 percent as well as the cost of any medications you take.
I recommend enrolling in two additional policies to cover the 20 percent Medicare does not pay as well as the cost of any medications you currently take or may be prescribed in the future.
First, I recommend a Plan G Medicare Supplement. With a Plan G Medicare Supplement you will pay Medicare’s once-a-year Medicare Part B deductible which is $183 in 2018.
After you have paid this $183 deductible one time in a calendar year your Plan G Medicare Supplement will pay all of the cost Medicare does not pay for the remainder of the year.
The monthly premium for a Plan G Medicare Supplement varies by state and age but in most states the monthly premium will be between $115 and $135 at age 65. Of the hundreds of people I have helped in the last 12 months, the average premium for a Plan G Medicare Supplement has been $123.27.
Some states such as Florida and New York are more expensive than this but will not increase as much in the future.
In most states your Plan G Medicare Supplement will go up a small amount every year as you get older because health care costs increase on average as you get older. States such as Florida and New York do not increase you premium as you get older based on age.
However, Medicare Supplement premiums in all states can increase due to overall inflation and health care costs.
The premium for your Medicare Part D drug plan will depend on which Medicare Part D drug plan covers your medications at the overall lowest cost including monthly premium, annual deductible (if any), which drugs the plan covers and how much the plan requires you to pay for your drugs.
Most Medicare Part D drug plans have a monthly premium between $20 and $30.
I would appreciate the opportunity to help you with your Medicare choices.
Simply click on the link below to schedule a free, no-obligation Medicare consultation.
I look forward to talking with you soon.
p.s. If you know of someone who needs help with their Medicare, please share this with them.
Charles Bradshaw is the Founder and President of MedicareAnswerCenter.com