Medicare 101: What Medicare Costs

By Deirdre R. Wheatley-Liss, LL.M (Taxation), CELA

So how much does Medicare cost?

Medicare premiums are based on your household modified adjusted gross income (MAGI) averaged out over the past two years. People with higher incomes pay more – the standard monthly premium plus what’s called an income related adjustment amount (IRMAA).

Part A. Most people don’t pay a Part A premium because they paid Medicare taxes while working. If you don’t get premium-free Part A, you pay up to $458 each month.

Part B and D. Click here to view the current monthly premiums and IRMAA amounts. The standard premiums for Parts B and D are set by the federal government – a base rate (for individuals with annual income up to $87,000) plus an IRMAA for those with higher incomes.

Part C. The premium for Part C – a Medicare Advantage Plan – depends on the various elements of the Plan and where you live. Contact insurance providers in your area for details about coverage options and premiums.

This post is for general informational purposes only. The specifics of your situation could affect your eligibility for Medicare and the specific benefits you receive. For a video presentation of this information, please visit Medicare 101: Maximizing Your or Your Loved One’s Health Care in Retirement. For more detailed information, please visit www.porzioplanning.com or contact us for a free 20 minute telephone consultation.