Medicare is the United States Federal health insurance program for anyone who is age sixty-five or older. Those under sixty-five with certain disabilities or with end stage renal failure are eligible as well. Medicare is federally funded but some parts or supplements require premiums. Medicare is categorized into three parts: Part A, Part B and Part D. It is important to know how much Medicare will cost me in order to prepare for retirement.
Your premium for Part A Medicare is determined by eligibility based on how many quarters of employment were Medicare-covered. If a person or their spouse has worked 40 or more quarters then there is no premium for Part A. If 30 to 39 quarters of Medicare-covered employment were fulfilled, then the premium is $254.00 per month. If a person has less than 30 quarters of employment and are not eligible for any other free insurance, then the premium is $461.00 each month.
People often opt to carry Part B insurance which offers more benefits. The premium is $110.50 for each month or $96.40–this was the 2009 rate which most enrollees will continue to pay.
Medicare Part D coverage is the prescription drug plan. Premiums will vary because enrollees sign up with a private Medicare approved and contracted organization for coverage.
When considering how much will Medicare cost me, I have to consider deductibles.The deductible for Part A Medicare per benefit year is $1,100 for the first 60 days of hospitalization. It increases to an additional $275 per day for days 61 to 90 and $550 per day for days 91-150. After day 150, the patient pays 100% of all expenses. Part B has a deductible of $155.00 per benefit year. Knowing how much Medicare will cost me will allow for better budgeting for the retirement years.