For most people, Medicare Part A comes at no cost after age 65. That’s because they have worked enough time (at least 40 quarters, 10 years total) while paying Medicare taxes.
Those who only paid Medicare taxes for 30-39 quarters have a monthly premium for Medicare Part A of $232. Those who paid Medicare taxes for fewer than 30 quarters during their working years pay a premium of as much as $422 per month.
And those are only costs for the premiums. You’ll also be responsible for hospital inpatient deductible and coinsurance.
But that’s all just Part A (hospital insurance). There are also Parts B, C and D to be considered.
It can be confusing to sort through if you’ve never spent time understanding the various aspects of Medicare. In our office at Texas Financial and Retirement, we often spend time helping people understand these pieces as they are preparing to retire.
Some of these pieces include:
- Part A (Hospital Insurance)
- Part B (Medical Insurance)
- Part C (Medicare Advantage)
- Part D (Medicare prescription drug coverage)
And then there’s Medigap (Medicare supplement) insurance for some people, as well.
Part B normally has a monthly premium cost of $134 (or more for those with higher incomes) and charges for deductible and coinsurance ($183 per year, then 20 percent).
Part C and Part D both incur monthly premium charges, but the amounts vary according the the insurance company and the specific policy.
It’s important to know about and consider all the costs for your health care during your retirement years. This can affect how much you’ll need to have saved before you can comfortably retire.
Contact me, James Holloway, Sr., and the rest of the Texas Financial and Retirement team here at firstname.lastname@example.org or by calling (903) 534-5477 to apply for a free initial consultation, and we’ll help you in planning to cover all the expenses you can expect during your retirement years.