Medicare provides essential health coverage, but it comes with premiums that vary by plan and individual circumstances. In this session, we discussed the costs associated with Medicare Parts A, B, C (Medicare Advantage), D (drug plans), and Medicare supplements (Medigap). Understanding these premiums will help you budget for your healthcare and make informed decisions.

Key Takeaways and Next Steps:

Medicare Part A

Most people receive Part A (Hospital Insurance) premium-free, as it is funded through payroll taxes. Those who don't qualify for premium-free Part A may pay a monthly premium based on a sliding scale, but this affects very few people.

Medicare Part B

Part B (Medical Insurance) has a premium that starts at $174.70 in 2024 for most people. However, higher-income earners may pay more, with premiums ranging up to $594 depending on income. Medicare looks back two years to assess your income and determine your premium bracket.

Medicare Part C (Medicare Advantage)

Many Medicare Advantage plans have $0 premiums, but some plans may charge a monthly premium, typically ranging from $18 to $36. Check your specific plan for premium details, as costs vary by plan and location.

Medicare Part D (Prescription Drug Plans)

Part D premiums vary significantly based on the plan, ranging from $0 to over $100 per month in 2024. Keep in mind that the premium is just the cost of maintaining the plan—it does not include copays or coinsurance for your medications.

Medicare Supplements (Medigap)

Medigap plans, which help cover out-of-pocket costs for Original Medicare, also have monthly premiums that vary widely. Premiums are determined by your age, location (zip code), and the plan you select. For example, a Plan G could range from $32 to $425 per month depending on where you live and your age.

Future Changes

Be aware that premiums can change annually, so keep an eye on updates, especially as 2025 approaches, when changes to drug plans and potential increases in Part B premiums could occur.