Original Medicare is not “free.” Just like enrollment, the amount a beneficiary pays for Medicare can depend on their tax history. Those who have been paying Medicare taxes for the required amount of time will pay less than those who haven’t paid Medicare taxes.
What Is Original Medicare?
Medicare is divided into different parts, each of which corresponds to an area of coverage. Original Medicare consists of Parts A and B. It covers 80% of the costs that come with basic medical care and hospital services. Many people end up paying the remaining costs out-of-pocket. Depending on your insurance usage and if you have a supplemental policy, your Medicare bills could significantly range.
Let’s Talk About Premiums…
It’s typical for people to be enrolled in both Parts A and B. If you’ve been paying Medicare taxes, you will most likely receive premium-free Part A. If you’re eligible for Social Security benefits and 65, you may be automatically enrolled in Part A. If you are automatically enrolled, you’ll receive an enrollment packet and your Medicare card around your 65th birthday.
Those under 65 can receive premium-free Part A if they qualify because of a disability or have End-Stage Renal Disease. Even if you don’t qualify for premium-free Part A, you can still purchase it. If you’re going to be purchasing Part A, the premium is between $252 and $458 each month. If you’re going to be purchasing Part A, you must also enroll in Part B.
There is no premium-free option for Part B. Your premium will be determined by your yearly income and adjusted accordingly. If you get benefits from Social Security, the Railroad Retirement Board, or the Office of Personnel Management, then your premium will be taken out of your benefit payment.
Other Costs for Original Medicare
While premiums should be taken into consideration, there are other factors that can impact your bill. There are deductibles and coinsurance associated with both Parts A and B. Understanding these additional costs is important in being able to predict what your future medical bills could be.
Not Free, But Worth It.
Original Medicare is not free. While some may not have a premium for Part A, they will still need to pay coinsurance and deductibles, as well as Part B’s premium. Even though Original Medicare does cost, it’s worth it to have reliable health insurance. If you’re enrolling in Original Medicare, do the research needed in order to maximize the care you receive from your benefits. For all your Medicare questions, contact our professionals at Fidelis Consultants.