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There are a lot of people everyday who call us and ask these questions. The costs for Medicare is something that many did not anticipate. Its very alarming to find out that Medicare is not free when you turn 65.
Part A Premium: Most people don’t pay a monthly premium for Part A. If you don’t qualify for premium-free Part A: You might be able to buy it. You will pay either $278 or $506 each month for Part A, depending on how long you or your work spouse worked and paid Medicare taxes.
In most cases, if you choose to buy Part A, you must also:
Part A hospital inpatient deductible and co-insurance You pay:
Part B Premium: The standard Part B premium amount is $164.90 or higher depending on your income. Part B deductible and coinsurance is $226 per year. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (DME)
Part C Premium: The Part C monthly premium varies by plan and by service area.
Part D Premium: The Part D monthly premium varies by plan (higher-income consumers may pay more).
The cost for Medicare Part A is usually zero. You have already paid for Part A from your payroll taxes if you’ve worked 10+years (40 quarters) in the US. Most medicare recipients qualify for free Part A.
Should you have a hospital stay in 2023, your Part A Deductible will be $1,600. In 2022 the deductible was $1,556.
Things to consider regarding Medicare Part A costs:
Medicare Part B premiums are based on your modified, adjusted, household gross income. Medicare will use your tax return from two years earlier to determine whether you’ll pay monthly surcharges. So for 2022, it would be your 2020 return. To request a reduction in that income-related amount due to a life-changing event like retiring, the Social Security Administration has a form you can fill out. They use that tax return to determine what you’ll pay for Parts B & D. (Part D premiums for 2021 are also based on income.)
Any money earned through wages, interest, dividends from investments, and capital gains are items that contribute to your modified adjusted gross income. Sadly to say this also includes your Social Security benefits and tax-deferred pensions.
|If your yearly income in 2021 (for what you pay in 2023) was||You pay each month (in 2023)|
|File individual tax return||File joint tax return||File married & separate tax return|
|$97,000 or less||$194,000 or less||$97,000 or less||$164.90|
|above $97,000 up to $123,000||above $194,000 up to $246,000||Not applicable||$230.80|
|above $123,000 up to $153,000||above $246,000 up to $306,000||Not applicable||$329.70|
|above $153,000 up to $183,000||above $306,000 up to $366,000||Not applicable||$428.60|
|above $183,000 and less than $500,000||above $366,000 and less than $750,000||above $97,000 and less than $403,000||$527.50|
|$500,000 or above||$750,000 and above||$403,000 and above||$560.50|
At Nevada Medicare we can make it easy for you – call us for a hassle-free help in understanding your benefits and what’s available to you. Contact Us today and speak to a licensed agent in your area.
Most people new to Medicare will pay the standard Part B monthly premium of $164.90 for 2023. Social Security will deduct your Part B premium from your Social Security check monthly. If you elected not to receive your Social Security income benefits yet, Medicare will bill you every 3 months (Quarterly). You can pay your Part B premium
Some Medicare recipients that have higher income will pay more, thus, tables below will illustrate how to determine your Medicare cost for Part B. The Department of Health and Human Services releases a notice every year in November, it will indicate the amount that you will pay in 2023 for Part B.
In 2023 Part B deductible is $226.
There are some people who get Social Security benefits that pay less than $170.10 in 2022. Around 2 million Medicare beneficiaries. Legislation prevents the cost of Medicare Part B from increasing more than the Social Security annual cost-of-living increase. Though the Social Security increase for 2022 is considerably larger, there is still a small group of beneficiaries being protected by the “hold harmless” provision.
Caution: Social Security will determine your Part B premium for 2022 and notify you by mail if you exceed the Medicare income limits and must pay a higher adjusted amount. Do not be panic and try to calculate this yourself.
Medicare costs for Part D varies based on income as well. Your Medicare Part D Premiums for 2023 also vary by plan. Nevada has a several plans to choose from.
Unless you are in a higher income bracket, you will pay the plans filed base premium. People with higher income will pay more for Part D. If you belong in a group employer coverage it’s important to factor this in if you are comparing the potential costs for Medicare Part D against your insurance.
To determine your Medicare cost for Part D drug plans in 2023, review the table below.
You can deduct Medicare premiums as part of your medical expenses if your total medical expenses for the year exceed 10% of your Adjusted Gross Income. This basically then excludes a portion of your income from being taxed.
We highly encourage you to consult with your accountant, a CPA or a tax professional for an advise before deducting Medicare premiums or any expenses that pertains to medical.
Do not worry if this seems confusing to you. You are not alone. Medicare premium increases happen almost every year. At Nevada Medicare we can help you figure out exactly what your Medicare costs will be. A lot people find that Medicare and a supplement costs less than costs of their previous employer coverage that they had during their working years prior to Medicare. Be sure to get estimates of your Medicare costs prior to your retirement so you can prepare ahead.
We can help you determine your potential costs right over the phone or in person. We can also help you plan for how much Medicare will cost in 2023.
Contact Us today, or complete our online request form. A licensed agent on our team will assist you.