Did you know with the new year comes new changes to Medicare? With the changes to Medicare for 2018 recently being announced we are going to share what this means for you.
If you or your spouse has worked and paid into Medicare taxes for 40 quarters, which is 10 taxable years, you most likely will not be have to pay a monthly premium for your Part A. You can also receive Part A premium free 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 Part A premium free if:
- You have received Social Security or Railroad disability benefits for 24 months
- If you have End Stage Renal Disease (ESRD) and meet certain requirements
If none of these circumstances apply to you and you have to pay a premium amount for your Medicare Part A your premium amounts for 2018 will be:
- If you have at least 30 quarters may buy into Part A which will be $232 a month. That is a $5 increase from 2017 premium amount
- For those who have less than 30 quarters the premium amount for Part A will be $422 a month. A $9 increase from the 2017 premium amount
Other important information to note:
The deductible amount for each benefit period is $1340
The co-insurance amounts for an in-patient hospital stay in 2018 have changed:
- For days 61-90 the co-insurance amount is is $335 per day of a benefit period
- For days 91 and beyond the co-insurance amount is $670 per each lifetime reserve day for each benefit period (up to 60 days over your lifetime)
If you are in a patient in a skilled nursing facility your coinsurance for days 21-100 will be $167.50 per day for each benefit period.
Rates for Medicare Part B will be the same for 2018. The standard premium amount is $134 a month, however this amount could be higher depending on your income.
Here is some information about Part B you will want to note:
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.
The charts below show your estimated prescription drug plan monthly premium based on your income as reported on your IRS tax return. If your income is above a certain limit you’ll pay an income related monthly adjustment amount in addition to your plan premium.
If you'd like to receive a year-to-year comparison chart to compare the Medicare price changes from 2017 to 2018, CLICK HERE.
If you already know the numbers and would like to explore your options because you're concerned about how it's going to affect your budget, talk with our licensed agents. They will be more than happy to help you with understanding your options and offer immediate solutions.