Costs of Medicare
Estimating the Cost of Medicare
Estimating how much Medicare costs can be difficult. There are multiple parts of Medicare that can have different monthly costs depending on which plans you choose.
At Modern Senior Benefits, we help you understand your exact Medicare costs based on your needs.
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Cost of Part A
Part A is generally free provided that you meet the tax requirements. Specifically, you must have 40 credits, the equivalent of paying taxes for ten years (40 quarters). If you have less than 30 quarters of taxes, you are responsible for $458 per month in 2020. If you have more than 30 but less than 40 credits, you’ll pay $252 a month for Part A.
The other costs associated with Part A depend on the health service. Part A covers:
- Inpatient care
- Skilled Nursing Facility
- Hospice Care
- Some Home Health Care
Cost of Part B
Part B covers outpatient and preventive services. As stated above, the monthly premium for Part B in 2020 was $144.60, and the annual deductible in 2020 was $198. This means that once you meet the annual deductible, Medicare will cover the remaining 80% of the cost, and you will pay the additional 20% of the cost.
Cost of Part C
Part C refers to Medicare Advantage Plans. These plans are offered by private insurers. While some of them have no additional cost, some do have a monthly premium. In 2020, the average monthly premium of a Medicare Advantage Plan was $35.55.
Cost of Part D
Part D is the part of Original Medicare that covers prescription drug coverage. It also has a monthly premium and deductible. The Part D monthly premium depends on your income. If your income is more than $87,000 if you file individually or $174,000 if you file jointly, expect to pay more. On average, people pay about $30 for their monthly premium. In 2020, the yearly deductible for Part D was $435. The actual costs of medications under Part D vary depending on the medication.
Supplement Plans
Supplement plans are plans offered by private insurers that bridge the gaps of Original Medicare. Since these plans are offered by private companies, their prices and coverage options differ. On average, they cost between $111-$190 per month.
