There’s no such thing as a free lunch, and unfortunately, that holds true for Medicare, too!
Even though you’ve probably paid Medicare taxes for many years, there are still costs involved with Medicare insurance.
Costs of Medicare Part A
Medicare Part A is $0 premium for most people. Essentially, this is the “free” part of Medicare – the part you’ve been paying into for so long.
While there’s no premium for about 99% of Medicare enrollees, there is a deductible along with coinsurance. These tend to go up a little bit each year.
Here are the 2023 Medicare Part costs:
- $1,600 deductible
- Days 1-60: $0 coinsurance
- Days 61-90: $400 coinsurance
- Days 91+ $800 coinsurance per “lifetime reserve day,” which caps at 60 days
- Skilled Nursing Facility coinsurance: $200
- Beyond lifetime reserve days: You pay all costs
The hospital coinsurance is paid per benefit period and is based on the length of your hospital stay.
Costs of Medicare Part B
All Medicare beneficiaries pay a monthly Part B premium, and the cost of it is based on your income.
Most people in 2023 will pay $164.90 per month for their Part B premium.
For updated Income-Related Monthly Adjustment Amount (IRMAA) charts, please visit www.cms.gov.
The annual deductible for Part B in 2021 is $226 per year. After your deductible is met, you typically pay 20% coinsurance on all Medicare-approved services and items.
Costs of Medicare Part D
Medicare Part D costs vary from plan to plan.
There are other costs like a deductible and copays, but that varies quite a bit depending on which plan you choose.
We can help you navigate this process, so please contact us for assistance! This is and always will be a free service.
Calling the number above will direct you to a licensed insurance agent.