Medicare monthly premium varies by what you get in your existing plan. Most Medicare beneficiaries have a hard time calculating Medicare monthly premiums. Use the calculator to see how much you need to pay for Medicare to keep your benefits.
An overwhelming majority of Medicare beneficiaries don’t pay for Part A. It’s because it comes free if the beneficiary has paid Medicare taxes for more than 40 quarters which equals 10 years. So if you’ve been working for ten or more years, you won’t pay for Part A premiums and it will be included in your plan for free. The same goes for other types of Medicare plans such as Medicare Advantage Plans which include Part A. The beneficiaries don’t pay for it.
Medicare Part A Premium Free Requirements
Here is how a beneficiary can get Part A premium-free.
- You’ve paid Medicare taxes for 10 or more years.
- You are eligible for Social Security or Railroad Retirement Board benefits.
- You or your spouse have Medicare-covered government employment.
If you are eligible for Social Security benefits but you haven’t filed for them yet, you still get Part A premium-free.
Medicare Part A Monthly Premiums
The Medicare beneficiaries that don’t qualify for premium-free Part A have to pay for the coverage. Since Part A covers hospital costs, the number of days spent in the hospital affect the coinsurance but the monthly premiums have a direct relationship with the duration of Medicare taxes paid.
Medicare Part A deductible is $1,484 for 2021.
Medicare Part A monthly premium is $471 if you’ve paid Medicare taxes for less than 30 quarters. The beneficiaries who paid Medicare taxes for between 30 and 39 quarters pay $259. As you now know, those who’ve paid Medicare taxes for more than 40 quarters don’t pay for Part A.
The coinsurance, on the other hand, is $0 for days between 1 and 60, $371 for days between 61 and 90, and $742 for days beyond 90. However, a beneficiary will use his or her lifetime reserve days after 90 days which have up to 60 days over their lifetime and after the lifetime reserve days are all used up, the Medicare Part A cost will be in full.
Medicare Part B Deductible and Monthly Premium
Medicare Part B deductible is $203 and the coinsurance is about 20 percent of Medicare-approved amounts for the doctor services. The standard monthly premium for Part B is $148.50 for 2021.
Total Medicare Cost
The total Medicare cost is what you get out of Medicare. Simply add up the Original Medicare (Part A and B) costs and the other benefits you get. For example, if you’re also getting Part D drug prescriptions, add that up to your Original Medicare costs and you will have the total amount you need to pay for Medicare benefits.