Is Medicare Free At Age 65?
Most people approaching retirment raise this question – Is Medicare free at 65? Let’s clarify something important. While Medicare does provide essential healthcare coverage, it’s not entirely free. However, not everyone has to pay for Medicare.
If you’re retired and on a low fixed income, every dollar counts so let’s look at who needs to pay for Medicare.
When we talk about paying for Medicare, we’re talking about monthly premiums and also deductibles, copays, and out of pocket costs related to your Medical coverage.
Medicare Costs
Most people don’t pay anything per month for Medicare Part A, which is hospital insurance. In order to be eligible for premium free Part A, you or a spouse must have worked and paid taxes for at least 40 quarters in your lifetime. Overall, this is equal to about 10 years.
If you don’t qualify for premium – free Part A, then you can buy it. The cost will depend on how long you or your spouse worked and paid Medicare taxes.
Medicare Part B Premiums
Is Medicare free at age 65 if you have to pay for Part B? For Part B which is Medical Insurance, most people will have to pay a monthly premium. How much you pay for your Part B premium will be based on your income reported on your tax return two years prior. Some people with low enough income do not have to pay for Part B.
Most people will pay the standard premium amount. Typically this will come directly out of your social security check each month. However, if you’re not getting social security benefits then you’ll get a bill from Medicare.
Income Adjustments
If your income is above a certain amount then you may pay more than the standard rate for Part B. This amount is based on what’s called the Income Related Monthly Adjustment Amount or IRMAA.
Each year usually between October and November, the government announces the standard base for Part B for the upcoming year.
Assistance Programs For Medicare
Assistance Paying For Part B – Medicare Savings Program
Many people can qualify for assistance paying for their Part B through the Medicare Savings Program. The Medicare Savings program can help pay for deductibles, coinsurance, and co payments associated with out of pocket costs for Medicare services.
If you’re approved for the Medicare Savings Program, additionally you’ll also automatically qualify for the Extra Help program. Extra Help provides reduced costs for Part D prescription medications. These assistance programs are available to Medicare beneficiaries with income and resources below certain qualifying levels.
If you want more info on these programs check out this post where I go into much more detail of how you can get help.
Other out of pocket costs associated with Medicare Part A, Part B and Part D drug coverage come from deductibles, coinsurance, and co payments for Medicare services. This is for Doctor visits, testing, or filling a prescription.
These costs can vary greatly depending on the type of Supplemental insurance you choose to go along with your Medicare. You can choose Medicare Supplement Insurance or Part C Medicare Advantage.
Everyone’s needs and budget are different. That’s where we can help you decide which type of Plan would work better for your situation.
If you need help with your Medicare please call our office at (800) 783-5901. We’ll be happy to help you!
