People aged 65 or above and disabled individuals can receive coverage from Medicare plans. The plans also cover medical bills and several types of treatments for individuals struggling with renal diseases. However, a more important debate is over the real costs of Medicare in 2022. How much does it cost to have any type of Medicare coverage today?
A range of costs such as premiums, deductibles, coinsurance, and out-of-pocket cap needs to be considered for various parts of Medicare in 2022. As a result, it might be difficult to understand how much you should pay for your plan in some cases. To start with, you can try to use specialized tools that would explain how much Medicare costs in your case.
We gathered additional info for those who would like to know the exact cost of the parts of Medicare. Let’s begin with the first type of Medicare coverage, Part A (Hospital Insurance).
Part A: Premium and Hospital Inpatient Deductible & Coinsurance
Medicare Part A is premium-free only for legal residents and United States citizens who have paid enough Medicare taxes.
Specifically, it is free for those who have worked 10 years or over 40 quarters as part of the workforce in the US.
But in cases where Medicare Part A isn’t premium-free for enrollees, they can expect to pay the following costs in 2022:
- $274 monthly premiums if the enrollee paid Medicare taxes for 30-39 quarters
- $499 monthly premiums if the enrollee only paid Medicare taxes for 30 quarters or less
We must mention that if you are 65 years or older and only qualify for a paid Part A and choose to not apply for it (i.e., right when you become eligible), it can cost you in the form of a penalty (+10% on top of your monthly premium). On the other hand, the coverage structure of the inpatient deductible and coinsurance is different.
In case your primary healthcare provider orders you to get hospitalized, you will have to bear several costs based on the Medicare Part A coverage. Those costs will include:
- Paying approximately $1,556 prior to hospitalization for a deductible
- $389 per day after 60 days and until 90 days of hospitalization
- $778 per day after 91 days and until 150 days of hospitalization
- Full per day costs following 151 days of hospitalization
Also, make sure that the healthcare facility (i.e., place of hospitalization) accepts Medicare coverage as a form of payment on your medical bills. Otherwise, you will end up paying the full costs on a daily basis for your entire period of hospitalization.
Plan B: Premium and Hospital Inpatient Deductible & Coinsurance
In 2022, you can expect to pay premiums worth $170.10 every month for standard Medicare Part B premium coverage. Like most people, you will be paying the standard Part B premiums based on your income.
The rate of Medicare Part B premiums depends on the pre-modified gross income ranges shown on the IRS tax return files. If you fall in a certain range of gross income adjusted for tax return files, you will pay the set premium amount.
In general, the monthly premium amount can increase to $578.30, depending on your annual income. Additionally, the Part B deductible will cost $233 per year on standard conditions.
Based on the hospital inpatient deductible and coinsurance, enrollees have to pay approximately 20% of costs (Medicare-approved fees).
Part C: Medicare Premium and Other Plans
Medicare Part C or Medicare Advantage costs vary considerably based on your choice of a health insurance plan. The premiums can change dramatically depending on the terms and conditions of an insurance plan that you choose.
The average monthly amount that enrollees of Part C Premium pay is $33 in 2022. The hospital inpatient deductible, coinsurance, and deductibles will differ for every policy. That’s because Part C (or Medicare Advantage) offers primarily private health insurance coverage.
In simple words, you will find health insurance plans in Medicare Part C that cost $0 per month and some that cost hundreds of dollars per month. The price range of private health insurance in Medicare Advantage is extremely diverse. So, make sure you research well and plan your purchase accordingly. This premium is on top of your Part B monthly premium.
Part D: Medicare Premium and Other Plans
The costs of Medicare Part D or Medicare Prescription Drug Benefits coverage can cost individuals a different sum based on their yearly income and the type of insurance plan they choose. The standard premium amount for Medicare Part D is $42 per month.
The average drug deductibles can be around $344 or more, depending on your net yearly income. The Medicare Part D plan can increase the overall cost by introducing additional costs. Nevertheless, additional costs apply to your Part D plan only when you pass a certain yearly income threshold.
Generally, the additional costs apply to those with a yearly income of over $91,000 in 2022.
Medicare Supplement or Medigap Plan
You may know this Medicare plan as the “Medigap Plan” as well. It’s a health insurance product that private companies sell to cover any coverage gaps that the Original Medicare Plan leaves behind. In other words, Medicare Supplement covers the medical costs that the Original Medicare Plan doesn’t approve.
The Medicare Supplement plan has an average cost of $163 per month. The monthly cost can change depending on your state’s pricing structure and chosen policy.
Medigap plan has numerous coverage options governed by different policies. So, the pricing will vary for each type of Medigap plan coverage in 2022.
It is important that you try and find the right insurance plan for you. As you learn about the Medicare coverage costs and eligibility information, you can make better decisions regarding your future health insurance. It’s necessary to plan such things nowadays to age well and have a hassle-free retirement. Use all available tools like Hellahealth and numerous others to be informed!