Most Medicare beneficiaries pay a premium each month for their medical coverage.
More than 40 million Americans receive their healthcare coverage through Medicare, the country's largest insurer. Medicare is divided into two parts: Medicare Part A is hospital insurance, and Medicare Part B covers most other medical expenses, such as doctor visits and outpatient treatment. While most Medicare beneficiaries do not pay for Part A coverage, there is a monthly premium for Part B, which is usually deducted from the beneficiary's Social Security check each month.
Part B Premiums
As of 2010, the Medicare Part B premium, or monthly charge, is $96.40 for anyone enrolled in Medicare prior to December 31, 2009. Anyone who enrolled in Medicare after January1, 2010, or who does not receive Social Security income, pays $110.50 per month. In some cases, Medicare enrollees with higher modified adjusted gross incomes, as reported to the IRS, pay more for their Part B premiums. Anyone with an income above $85,001 for an individual, or $170,001 for a couple filing jointly, pays more for their Medicare Part B. In general, the cost of the Part B premium increases each year.
Penalty for Late Enrollment
Most working Americans become eligible to enroll in Medicare three months before they turn 65, and can enroll for up to four months after they turn 65. If you are still working and receive health insurance through your employer, you may opt to not enroll in Medicare Part B when you become eligible. However, once you leave your job or the coverage ends, you have up to eight months to enroll in Medicare Part B without paying higher premiums. If you choose not to enroll during this Special Enrollment period, your Part B premium will increase 10 percent for every year that you delayed your Medicare enrollment.
Help Paying Premiums
There are programs in place to assist low-income Medicare beneficiaries in paying the Part B premiums. As of 2010, any individual making less than $923 per month, or couple making less than $1,235 per month, is eligible for the Qualified Medicare Beneficiary program, which covers the cost of the Part B premium, plus all deductibles and co-pays. A Specified Low-Income Medicare Beneficiary is someone who makes less than $1,103 per month or $1,477 a month as a couple. The SLMB program pays the Part B premium only. Those with slightly more monthly income can apply for the Qualified Individuals program, which is operated on a first-come, first-served basis and only accepts a limited number of participants each year. QI pays Part B premiums only. Anyone who receives full Medicaid benefits from their state or Supplemental Social Security Income automatically qualifies for extra help with their Part B premiums.
Medicare Advantage Plans
Some Medicare beneficiaries choose to join a Medicare Advantage or Medicare Part C plan. These plans are operated by independent insurance companies and include all Medicare Part A and B benefits, and in most cases, Part D prescription coverage. Most MA plans charge a monthly premium, but some cover your Medicare Part B premium, which adds that money back into your Social Security check.
Tags: Medicare Part, Part premium, Medicare beneficiaries, Social Security, enroll Medicare
