Because of the rapid increase in healthcare costs in the United States, government healthcare programs are becoming more important. Medicare, a government healthcare plan available for American citizens or legal residents who turn 65 and those with certain disabilities, has been a widely successful option for those seeking quality health insurance at an affordable price. While Medicare is more affordable than private health insurance options, it does have many different costs.
Medicare Part A is associated with hospital stays and expenses.
Most individuals on Medicare do not have to pay a premium with Part A if they worked the minimum requirement of 10 full years or 40 quarters. If an individual worked between 30-39 quarters, the monthly premium is $252. If an individual worked less than 30 quarters, the monthly premium is $458.
For each 90 day benefit period, Medicare recipients have a $1,408 deductible.
Coinsurance costs are broken into 4 different periods.
- Days 1-60 - $0
- Days 61-90 - $352 per day
- Days 91-150 - $704 per day
- Days 151+ - A Medicare recipient will have to pay the entire cost
Medicare Part B is associated with doctor visits and fees.
The standard premium for Medicare Part B is $144.60. However, there are six different premiums that an individual may pay, and this amount will vary depending on an individual's income. The different rates for 2020 are based on a person's 2018 tax returns.
- $87,000 individually or $174,000 jointly - $144.60
- $87,000 - $109,000 individually or $174,000 - $218,000 jointly - $202.40
- $109,000 - $136,000 individually or $218,000 - $272,000 jointly - $289.20
- $136,000 - $163,000 individually or $272,000 - $326,000 jointly - $376
- $163,000 - under $500,000 individually or $326,000 - under $750,000 jointly - $462.70
- $500,000+ individually or $750,000+ jointly - $491.60
The deductible for Medicare Part B is $198.
For coinsurance, a Medicare customer will typically have to pay 20% of the cost if the service is approved by Medicare.
Medicare Part C is a separate healthcare plan that combines Parts A, B, and D into a single healthcare plan that is offered and administered through a private insurance company. Also known as a Medicare Advantage program, Medicare Part C is often a good option for those who have specific health conditions such as cancer or HIV/AIDS. Medicare Advantage programs generally have the same privileges, protections, and coverages as private health insurance and Medicare Parts A, B, and D. However, they usually have higher out-of-pocket costs. There are several different types of these plans available depending on where an individual resides, and final costs will vary from each plan.
Medicare Part D is a prescription drug health insurance program offered and administered through private health insurance companies. Premiums and other costs will vary from each plan. However, an additional fee is paid by individuals with an income above a certain limit. The different rates for 2020 are based on a person's 2018 tax returns.
- $87,000 individually or $174,000 jointly - $0
- $87,000 - $109,000 individually or $174,000 - $218,000 jointly - $12.20
- $109,000 - $136,000 individually or $218,000 - $272,000 jointly - $31.50
- $136,000 - $163,000 individually or $272,000 - $326,000 jointly - $50.70
- $163,000 - under $500,000 individually or $326,000 - under $750,000 jointly - $70
- $500,000+ individually or $750,000+ jointly - $76.40