Medicare Costs For 2019
Medicare Made Easy
How much is Medicare Part A? Part A is no additional charge for most people. However, your Part B and Part D will have a monthly premium.
The costs for Medicare Part B and Part D, as well as any supplemental coverage, is something that many will not anticipate. Do not be surprised when you turn 65 and learn that Medicare is not free.
Do you have to pay for Medicare? Yes, most people will pay Medicare premiums. Fortunately, it’s fairly easy to get together a Medicare cost estimate so that you can plan ahead.
Medicare Cost for Part A in 2019
For most people the cost for Medicare Part A is usually zero. As long as you have worked 10 or more years (40 quarters) in the U.S., you have already paid for Part A through payroll taxes. Statistically 99% of Medicare beneficiaries qualify Part A for free.
If you have to purchase Part A, the cost for Medicare Part A will be around $437 monthly. People with less than 40 quarters work experience but more than 30 quarters will be a pro-rated premium of $240 Monthly.
If you were to have a hospital stay in 2019, your Part A Deductible will be $1364. Be advised that if you have a Medigap plan, it will likely cover this cost for you.
Medicare Cost for Part B in 2019
Your Household Income is what Medicare Part B Cost is Based on.
2019 Medicare part B premiums
Medicare Part B premiums are based upon your modified, adjusted, household gross income. The Social Security office will pull your IRS tax return from the previous two years. They use those tax returns to calculate what you will pay for Parts B & D. Yes, the Part D premiums for 2018 are also based on income.
The items that contribute to your modified adjusted gross income (MAGI) include any money earned through wages, interest, required minimum dividends from investments, and capital gains. They also include Social Security benefits and tax-deferred pensions. The distributions from Roth IRAs and Roth 401(k)s, life insurance policies, reverse mortgages and health savings accounts are not counted in the MAGI calculation.
If you filed your taxes jointly with a spouse, Social Security will base your premiums for each of you based on that married income. However, each of you will have to pay your own Part B premium. The premiums for Part B are always individual, never combined. Social Security just uses your household income to determine where you fall individually in the Part B premiums chart.
Social Security generally notifies you of your next year’s premium annually, around December or early January, by mail.
Roughly about 5% of all Medicare beneficiaries are currently paying higher Medicare premiums.
Back in 2018, Medicare lowered the top three income brackets. Meaning that affluent retirees were placed into a higher bracket than the years previous. This has resulted in a higher percentage of Americans are paying larger Medicare Part B premiums.
What Part B will Cost for Most Enrollees
In 2019 most people new to Medicare will pay $135.50 for their Part B premiums. This is the standard premium that most people pay based on income. Social Security will deduct your Part B premium from your Social Security check each month. If you are not enrolled in Social Security income benefits yet, they will bill you each quarter.
The Medicare Part B deductible for 2019 is $185, up $2 from 2018.
Some People Pay Less for their Medicare Part B Premium?
A few people who get Social Security benefits will still pay less than $135.50 in 2019. This affects about 2 million Medicare beneficiaries. Legislation prevented the cost of Medicare Part B from increasing more than the Social Security annual cost-of-living increase. Recently, we have had little to no COLA increase, so those individuals have only been paying around $109 a month. Although the Social Security increase for 2019 is substantially larger, there are still a few beneficiaries being protected by this “hold harmless” provision.
Keep in mind you do not have to calculate this yourself. Social Security determines your Part B premium for 2019 and will notify you by mail.
Most Folks Just Pay the Standard Part B Premium
You’ll pay the standard Medicare Part B premium amount if:
- You enroll in Part B for the first time in 2019 or after
- You do not get Social Security benefits
- You are directly billed for your Part B Medicare premiums.
- You have Medicare and Medicaid, and Medicare pays your premium for you. (Your state pays the standard $134 premium.)
- Your modified adjusted gross income on your IRS tax return from 2 years ago is above a certain amount. If it is, you will pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an additional charge added to your premium.
Here is what you will pay in 2019 if you are in one of these groups:
Note: the Medicare Cost for some people in higher income brackets went up in 2018 and will increase again in 2019 due to the MACRA legislation passed just a few years ago.
Medicare Cost for Part D in 2019
Just like Part B, your Medicare costs for Part D varies based on your income. Your Medicare Part D Premiums for 2019 also vary by plan. There may be 20 plus plans to choose from.
You may find plans that start around $20 a month. This is the base premium amount for Part D.
You will pay the plans published base premium rate unless you are in the higher income brackets. People who have higher incomes will pay more for Part D. It is important to factor this in if you are comparing the potential costs for Medicare Part D against other insurance, such as employer insurance.
Medicare Part D Premiums Chart
To determine your Medicare cost for Part D drug plans in 2019, review the table below.
If you find yourself in a higher income bracket because your earlier tax returns showed higher income than you now have after retirement, you can appeal your IRMAA. Visit the Social Security website and find the form SSA-44 called Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event.
If you have to pay a Part D Penalty
Next, learn more about these:
Medicare Supplements (Medigap)
Medicare Prescription Drug Coverage
2019 Medicare Costs, Deductibles, Co-Pays, and Co-Insurance
Part A Premium – $0, as long as you have worked 10 or more years (40 quarters) in the U.S.
If you have to purchase Part A, the cost is around $437 monthly.
Part A Deductible* – $1,364 for Days 1-60, $341 per Day Co-Pay for Days 61-90, and $682 per Day Co-Pay for your Lifetime Reserve Days (Days 91-150).
*It is a Benefit Period Deductible that resets every 60 Days of non-use.
Skilled Nursing – Days 21-100 will cost $170.50 per Day Co-Pay.
Part B Premium –$135.50 a Month on Average and is based on income.
Part B Deductible – is $185 and then you pay 20% Co-Insurance.