Mark Luigi Dacumos
Ask someone about their priorities as they age, and healthcare will probably be near the top of the list. And while healthcare is necessary, here’s its major downside: The cost.
It’s no secret that healthcare is expensive, which is why we have health insurance. And one of the most popular health insurance programs is Medicare.
Contrary to popular belief, Medicare isn’t free. There are several costs associated with the coverage, which we’ll discuss now.
Costs Associated With Medicare Coverage
Medicare Part A
Medicare is divided into parts. The first is Part A, or your “hospital insurance.”
It covers hospital stays, care in nursing facilities, etc. Although many people get their Part A coverage for free by paying Medicare taxes during their working years, receiving Social Security, or via railroad retirement benefits, others have to pay a monthly premium.
Other costs linked to Medicare Part A include a deductible of $1,484 in 2021 and coinsurance.
Medicare Part B
This is your “medical insurance,” which covers any visits to doctors or specialists, plus vaccines, ambulance trips, medical supplies, and so on. Parts A and B combine to make up what’s known as “original Medicare.”
Part B has premiums that get higher according to how much income you make. The standard premium in 2021 is $148.50. Beyond that payment, Medicare Part B also has a deductible and coinsurance.
Medicare Part C
Also known as Medicare Advantage, these plans carry a premium, although some are advertised as free.
Medicare Part D
Here’s your prescription coverage, which also comes with a premium that starts at $33.06 in 2021. The more income you make, the more you’ll pay.
As you can see, Medicare is anything but free. However, it can give you coverage when you need it, which brings up the question: Who qualifies for Medicare?
Medicare Eligibility
Being 65 or older puts you in the zone to gain automatic eligibility for Medicare. Applying for coverage can begin up to three months before you turn 65.
Age isn’t the only way to earn Medicare eligibility, though, as you may also qualify if you have a disability. You can be under the age of 65 and receive Medicare benefits as long as you’re a recipient of Social Security disability payments.
People with ALS who receive disability benefits are also automatically eligible for Medicare. Lastly, suffering from permanent kidney failure and having end-stage renal disease makes you eligible for Medicare benefits.
If all of this discussion about premiums, deductibles, and eligibility seems confusing, you’re certainly not alone. Medicare has several moving parts, and its rules and costs can change every year.
If you need help with figuring out your Medicare benefits, visit the My Medicare Matters site. Their questionnaire can connect you to a benefits advisor and professional counseling at no cost.
Your State Health Insurance Assistance Program (SHIP) can also help with its staff of highly-trained volunteers so you can get the coverage you need without feeling overwhelmed.
