Medicare A & B

What is Medicare? It is federal health insurance for folks that are 65 and older typically. When you turn 65, most folks have the option of getting Medicare. And if you’re under 65 with certain disabilities, you may be eligible as well. Started in 1965 by President Johnson. I’m going to go over original Medicare.

And while it’s good to know what original Medicare covers. Take it with a grain of salt, because ultimately there are going to be two options, either Medicare Advantage or Medicare Supplement that 99% of folks go with. Original Medicare could change depending on what you do here. I’m just trying to simplify it. Don’t feel you have to learn everything because you always can schedule that one-on-one consultation with us.

Everyone’s situation’s unique: your finances, your health, everything. There is no cookie cutter solution for everyone. Okay, let’s talk about it. Part A Medicare, part of original Medicare, part A is your hospital coverage. Most of you guys have worked ten years of your life. I’m assuming you or your spouse have worked ten years of your life.

You have earned part A and you do not have to pay a monthly premium for part A, as long as you have worked for three-quarters or ten years of your life. And so if you’re wondering what that little Medicare tax was coming out of your check every month for all these years, this is what you were paying for part A of Medicare.

So how does Medicare part A work? Again, take this with a grain of salt because it will change depending on one of these two options that you take Advantage plan or Medicare Supplement. But if you were to just keep part A and you were to go to the hospital, you would have $1,632 deductible, and that would cover you for the first 60 days in the hospital.

And after day 60, you would start paying $408. Don’t get too hung up on this, and I’m going to reference back here in just a second to this. Medicare Part B, this is your doctor’s office portion of Medicare Part B doctor’s office portion or your outpatient portion of Medicare. It does cost a monthly premium, $174.70 is most people will pay.

If you are on Medicaid, you may pay nothing. If you make over a certain amount of money, you could pay more for part B, but the standard premium is $174.70 a month. Once you pay your premium, then you will have a deductible, an annual deductible of $240. You’ll pay the first $240 of the doctor once you meet that deductible.

Then Medicare Part B kicks in and covers 80%, and you would be responsible for the remaining 20%. That is part B in a nutshell. This could change based on what we do, whether that Medicare supplement or Medicare Advantage plan. I’ll reference back here in just a second. This is an IRMAA chart. This is the income related monthly adjustment amount.

If you make over a certain amount of money, you could pay more for part B and $103,000. If you’re filing an individual tax return, or 206,000 if you’re following a joint tax return. And they base that off modified adjusted gross income. They look back two years. I know that’s a lot, but if you feel like you’re in one of these income brackets or you’re making over that amount of money, you definitely want to schedule a consultation with us so we can help you dive into that and see how much you will actually be paying for part B.