Understanding the Cost of Medicare

Meet Beth, Beth is 64 and turns 65 next month. Beth knows when she turns 65 she will be able to receive her Medicare. Beth isn’t too worried because she knows Medicare pays for everything just like her insurance with the company she just retired from did. Beth figures that she will not have to pay anything because it was taken out of her paycheck when she was working. Little does Beth know that Medicare DOES NOT cover everything and DOES have monthly payments.

If you’re like Beth and turning 65 soon you will want to keep reading as we explain what to expect. Medicare will have premiums, copays, and deductibles you will be responsible for. Medicare is not a free program once you have enrolled. Medicare also does not cover dental, vision, or long-term care. You will not have to pay premiums for your Part A as long as you worked at least 10 years. Your Part A will cover hospital visits, hospice, and some home health services. Your Part A does have a deductible of $1,364 (2019).

Part B of Medicare will cover your outpatient care and has a monthly premium of $135.50 (2019). Part B also has a deductible of $185 (2019). After meeting your deductible you will pay 20% of services. None of this covers your prescriptions which is where Part D comes in. The average cost for Part D in 2019 is $32.50 per month according to the Centers for Medicare and Medicaid Services. These are income based which we will get into in next weeks Weekly Wednesday!

It is a good idea to look into Medicare Supplement (Medigap) Plans to help you cover costs. A Supplement can help you cover out-of-pocket costs like your deductibles and coinsurance. Complementary Products can help you cover dental, vision, or hearing since Medicare does not. If you want to learn more about Medicare or Medicare (Medigap) Supplement Plans give us a call and talk with one of our Senior Insurance Specialist at 844.437.4253.

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