Cost of Medicare
Though Medicare offers health insurance to seniors and people with specific disabilities, beneficiaries must pay the required premiums, copayments, and other out-of-pocket costs. Below are the Medicare Costs for 2023.
Medicare Part A
For Medicare beneficiaries who have paid Medicare taxes for 10 years (40 quarters) while they were employed, Medicare Part A is premium-free. However, people who have not paid up to 30 quarters of Medicare taxes will pay a standard Part A premium of $506. If you have paid more than 29 quarters of Medicare taxes but not up to 40 quarters, the premium rate you’ll pay is $278.
Apart from the premium, Medicare beneficiaries also pay deductibles and coinsurance. In 2023, the Part A deductible is $1,600.
Medicare will also cover the cost of the medical expenses for the first 60 days in an inpatient facility approved by Medicare. However, after the 61st day, the beneficiary will pay $400 for each benefit period. This coinsurance fee will increase to $800 after 90 days at the facility.
Medicare Part B
Medicare Part B beneficiaries must pay the monthly premiums and deductibles. There is a standard premium rate, which varies each year. In 2023, Part B’s premium rate is $164.90, though the premium may vary based on your income. Also, there is an annual deductible rate of $226 for Medicare Part B in 2023. To get help with the out-of-pocket costs for Medicare Part A and Part B, you can enroll for a Medicare Supplement Plan.
Part C and Part D
The cost of Medicare Advantage plans and standalone prescription drug plans depend on the type of plan and the insurance provider.
Some Medicare Advantage plans have a $0 premium rate, but you still have to pay your Medicare Part B premium. However, the average Medicare Advantage premium in 2023 is expected to be $18 per month. Medicare Advantage also has a maximum out-of-pocket limit of $8,300.
For Medicare Part D, the out-of-pocket costs are determined by the beneficiary’s income. The higher the income, the more you may have to pay. While Part D premiums can be as low as $1.60 and as high as $113, the average Part D premium for 2023 is $31.50. Also, while some Part D plans may not have a deductible, some can have a deductible of no more than $505.
To know more about the costs of Medicare plans, reach out to Bend Medicare today. We can help you get the best plan for you based on your budget.
