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Medicare Costs

 

How much will Part A coverage cost me?

 

Usually, you don’t pay a monthly premium for Part A coverage if you or your spouse paid Medicare taxes while working. This is called premium-free Part A. If for some reason you aren’t eligible for premium-free Part A, you might be able to buy Part A if:

 

  • You are 65 or older, and you have (or are enrolling in Part B and meet the citizenship and residency requirements.
  • You are under 65, disabled, and your premium-free Part A coverage ended because you returned to work.

 

In 2015, anyone who had to buy Part A paid up to $407 each month in premiums.

 

In most situations, if you buy Part A, you must also have Part B and pay the monthly premiums for both.

 

Is there a late enrollment penalty for Part A?

 

If for some reason you’re not eligible for premium-free Part A, and you don’t purchase it when you’re first able to, your monthly premium might go up 10% for every 12 months that you didn’t have Part A. You will also have to pay the higher premium for twice the number of years you could have had Part A, but chose not to sign up.

 

How much will Part B coverage cost me?

 

You pay a Part B premium each month. Most people who get Social Security benefits will continue to pay the same Part B premium amount as they paid in 2015. This is because there wasn’t a cost-of-living increase for 2016 Social Security benefits. You’ll pay a different premium amount in 2016 if:

 

  • You enroll in Part B for the first time in 2016.
  • You don’t get Social Security benefits.
  • You’re directly billed for your Part B premiums.
  • You have Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium amount of $121.80.)
  • Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount.

 

If you’re in 1 of these 5 groups, here’s what you’ll pay:

Is there a late enrollment penalty for Part B?

 

If you do not enroll for Part B when you’re first eligible, you might have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B might go up 10% for each full 12 month period that you could have had Part B, but did not enroll for it. If you can enroll for Part B during a Special Enrollment Period, you usually don’t pay a late enrollment penalty.

 

How do I pay for my Part B premium?

 

If you’re receiving Social Security, Railroad Retirement Board, or Office of Personnel Management benefits, your Part B premium is going to be automatically deducted from your monthly benefit payment. If you are not receiving benefit payments, you’ll be receiving a bill.

 

There are 3 ways to pay your bill:

 

  1. Mail your premium payment to:

Medicare Premium Collection Center

PO BOX 790355

Louis, Missouri 63179-0355

If you get a bill from the RRB, mail your premium payments to:

RRB

Medicare Premium Payments

PO BOX 979024

St. Louis, Missouri 63197-9000

  1. Pay by credit card. If this is an option for you, complete the bottom part of the payment coupon on your Medicare bill and mail it to the address above.

3. Sign up for Medicare Easy Pay. It’s a free service that will automatically deduct your premium payments from your savings or checking account each month. Visit Medicare.Gov to learn more and to find out how to sign up.

Do you have more questions about Medicare costs? Do you want a FREE quote? One of our Medicare Mentors can assist you!

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