A question that we are often asked is “What are the premium costs associated with Medicare going to be for the upcoming year?” We understand that this is a common concern and since the numbers have recently been announced, we are going to break it down for you:
Medicare Part A:
If you and/or your spouse have worked and paid into Medicare taxes for 40 quarters, which is 10 taxable years, you most likely will not have to pay a monthly premium for Medicare Part A.You can also get premium free Part A if:
- You already receive retirement benefits from Social Security or the Railroad Retirement Board
- If you are eligible to receive Social Security or Railroad Retirement benefits but have not filed for them yet
- You or your spouse has Medicare covered government employment
If you are under age 65, you can get premium free Medicare Part A if:
- You have received Social Security or Railroad Board disability benefits for 24 months
- If you have ESRD, End Stage Renal Disease, and meet certain requirements
If none of these circumstance apply to you and you have to buy Medicare Part A, your premium amounts for the year 2017 will be $417 per month.
Medicare Part B:
There is a monthly premium amount associated with Medicare Part B. Most people will pay the standard premium amount which is $134.00 a month. This amount may be higher depending on your income. However most people already receiving Social Security benefits will pay less than that amount. The reason being is that the Part B premium increase for the year exceeded more than the cost of living increase for 2017 Social Security Benefits. Social Security will tell you the exact amount that you will be paying for Medicare Part B in 2017.
Some people will automatically be signed up for Medicare Part B, however some are not. If you do not sign up for Medicare Part B when you are first eligible, you may have to pay a late enrollment penalty for as long as you have Part B. This penalty could make your premium go up 10% for each full 12 month period that you could have had Part B but did not sign up. (You may also be required to wait to sign up until the next General Enrollment Period from January 1 to March 31st to enroll in Part B, with coverage starting on July 1st of that year) Your late enrollment penalty may be waived if you meet certain conditions that allow you to sign up during a Special Enrollment Period.
Part C and Part D:
Premiums and deductibles for next year for Medicare Advantage and Medicare Part D prescription drug plans have already been determined and set, so they will not be affected by the Part A and Part B Medicare changes. Monthly premiums for these plans will vary by the plan.
At Trusted Senior Specialists our goal is to make the transition into Medicare as stress free for you as possible. When you call to speak with one of our trusted experts we can help you review all of the options that are available to you, as well as ensure that you have the proper coverage and protection you need.
In the mean time, download your 2017 Changes to Medicare Guide to help you better prepare for your Medicare enrollment experience. Until next time!
DOWNLOAD YOUR NEW TO MEDICARE CHECKLIST BELOW