Many people are shocked to learn that, even though you paid into Medicare every week from your payroll taxes, you still have to pay for Medicare. For 2023, the costs for Medicare are listed below:
As long as you worked 40 quarters (10 years) in the United States, you won’t have to pay an additional premium for Medicare Part A.
The Part A deductible for 2023 is $1,600 per benefit period which means that you could have to pay that charge more than once per calendar year.
Once you deductible is paid, you’ll have no co-pays for Part A for your first 60 days as an inpatient in the hospital. Starting on day 61, your co-pay is $400 per day for days 61-90, and then $800 per day for your lifetime reserve days which cover days 91-150.
You only get 60 lifetime reserve days to use during your lifetime.
The minimum monthly premium for Part B in 2022 is $164.90/month. However, if you made more than $97,000 in tax year 2021 as an individual or double for couples filing taxes jointly, you may have to pay up to $560.50/month for your Medicare due to the IRMAA adjustment for high earners.
Sign up for Medicare Easy Pay to have your premium automatically deducted from your bank account.
Cost: Typically $0-20/month
The cost for Medicare Advantage plans depends on which one you select. In most areas, you can find a quality Medicare Advantage plan for $0-20/month, but this is heavily dependent on your prescriptions, whether you want an HMO or PPO, and many other factors. Note that this monthly payment is in addition to your Part B premium.
For more information on Medicare Advantage Plans, see the page Medicare Advantage Plans.
For a 65 year old female non-smoker in Indiana, it will cost roughly $110/mo for a Plan G or $90/mo for a Plan N. This premium is in addition to your Part B premium.
Cost: Typically $7-30/month
The monthly premium for your Part D Prescription drug plan is dependent upon which prescriptions you are taking. Some plans might be as low as $7/month, but if they don’t cover your medications, they will end up costing you way, way more than a $20/month plan that does cover them. On average, you can expect to pay around $20/month for your prescription drug plan.
For more information on Prescription Drug Plans, see the page Medicare Part D.
Cost: The cost of a Medicare Supplement plan depends on several factors:
For more information on Medicare Supplement Plans, see the page Medicare Supplements.