How much does Medicare cost?

[lampshade]

At 62 my husband will be able to collect SS in the amount of $1,628 per month. How much in taxes will be taken out on that and is there any way I can figure out how much Medicare is going to cost him?

Thank you.

 

[W2R]

Most people go on Medicare at age 65. Here's a webpage that details the costs.

Medicare 2014 costs at a glance | Medicare.gov

This webpage from Social Security may be helpful regarding how they handle tax withholding:

Benefits Planner: Withholding Income Tax From Your Social Security Benefits

 

[lemming]

W2R is right. He is not eligible for Medicare until he is 65. His full retirement age is 66. If he starts collecting a 75% benefit early he will not have to pay medicare until he is 65. That amount for part A (hospital) is now around $100 a month.( more if your household income is over $200k.)

 

[Chuckanut]

Medicare starts at 65. Right? Taking SS earlier does not change that. Right?

 

[Telly]

Medicare starts at 65. Right? Taking SS earlier does not change that. Right?

Correct!

 

[FIRE'd@51]

That amount for part A (hospital) is now around $100 a month.( more if your household income is over $200k.)

Actually, part A is "free". The $104.90 taken out of SS each month is for part B.

 

[lemming]

oh rats I knew that-don't know why I got it backwards

 

[mf15]

Additional cost over and above standard medicare.
You are probably also going to want a medicare supplement,if so also need
medicare part D drug plan,or part C medicare advantage plan.
Part D plans anywhere from about 18/month to 100/month depending on how good you want the formulary. The supplements cost between about 69-150/month depending which plan, where you live and how many plans are available, cost may/will rise with age.
Old Mike

 

[haha]

W2R is right. He is not eligible for Medicare until he is 65. His full retirement age is 66. If he starts collecting a 75% benefit early he will not have to pay medicare until he is 65. That amount for part A (hospital) is now around $100 a month.( more if your household income is over $200k.)

This is one of those things where your mileage will not vary. Here are the premiums at various income levels, per SSA.

Part B premiums by income

If your yearly income in 2012 (for what you pay in 2014) was You pay (in 2014) File individual tax return File joint tax return File married & separate tax return $85,000 or less $170,000 or less $85,000 or less $104.90 above $85,000 up to $107,000 above $170,000 up to $214,000 Not applicable $146.90 above $107,000 up to $160,000 above $214,000 up to $320,000 Not applicable $209.80 above $160,000 up to $214,000 above $320,000 up to $428,000 above $85,000 and up to $129,000 $272.70 above $214,000 above $428,000 above $129,000 $335.70
Ha

 

[modhatter]

Additional cost over and above standard medicare.
You are probably also going to want a medicare supplement,if so also need
medicare part D drug plan,or part C medicare advantage plan.
Part D plans anywhere from about 18/month to 100/month depending on how good you want the formulary. The supplements cost between about 69-150/month depending which plan, where you live and how many plans are available, cost may/will rise with age.
Old Mike

Correction on the supplement plans. They can go higher than $260 a month. I pay $259 for my F plan. Rates are different in each state.

 

[REWahoo]

Correction on the supplement plans. They can go higher than $260 a month. I pay $259 for my F plan. Rates are different in each state.

They can also go lower than the $69/mo mentioned. DW is currently paying $45/mo for a high deductible Plan F.

 

[mf15]

Wow big variation in supplement plans, I pay 69/mo for F HD and thought that was
cheap, while 260/mo for regular plan F is pretty high. Regardless of plan, medicare picks up 80% so what you are paying for is the other 20% with F,plus the plans may extend some longer term hosp stays,over and above medicare.
So far the plan F HD is working out well,but have not used any hosp care yet.
Old Mike

 

[marko]

This is one of those things where your mileage will not vary. Here are the premiums at various income levels, per SSA.

Part B premiums by income

If your yearly income in 2012 (for what you pay in 2014) was You pay (in 2014) File individual tax return File joint tax return File married & separate tax return $85,000 or less $170,000 or less $85,000 or less $104.90 above $85,000 up to $107,000 above $170,000 up to $214,000 Not applicable $146.90 above $107,000 up to $160,000 above $214,000 up to $320,000 Not applicable $209.80 above $160,000 up to $214,000 above $320,000 up to $428,000 above $85,000 and up to $129,000 $272.70 above $214,000 above $428,000 above $129,000 $335.70
Ha

Here's what I don't understand: I have two friends who have told me "...Medicare is far from inexpensive; my mother is paying over $400 a month for Medicare..."

I know for a fact that these ladies are in the low end of the income scale. The only thing I can think of is that perhaps they didn't/never worked outside the home (?). Otherwise, I can't figure out how they must pay so much.

 

[REWahoo]

Here's what I don't understand: I have two friends who have told me "...Medicare is far from inexpensive; my mother is paying over $400 a month for Medicare..."

....I can't figure out how they must pay so much.

Not hard to end up with $400/mo or more when you combine the cost of Medicare Part B ($105) + Medicare Part D + a Medicare Supplement Plan.

 

[FIRE'd@51]

Not hard to end up with $400/mo or more when you combine the cost of Medicare Part B ($105) + Medicare Part D + a Medicare Supplement Plan.

But you have very good coverage. With a plan F supplement, there is no deductible or copay for covered procedures. The only copays are for the part D drug coverage.

 

[aja8888]

Wow big variation in supplement plans, I pay 69/mo for F HD and thought that was
cheap, while 260/mo for regular plan F is pretty high. Regardless of plan, medicare picks up 80% so what you are paying for is the other 20% with F,plus the plans may extend some longer term hosp stays,over and above medicare.
So far the plan F HD is working out well,but have not used any hosp care yet.
Old Mike

Plan F (not F HD) has been a godsend for us. DW has spent 3 stays in the hospital in 2013 and two (so far) in 2014 for bouts with COPD and each stay is over a week. So far, all we have paid beyond Medicare/insurance premiums is $0. Her Part D cost for medications (inhalers, steroids,etc) are significant as we hit the "doughnut hole" each year by August.

Her Plan F cost is $180/month and Part D $35/month. My Plan F cost is $225/month and Part D $22.80/month. Both of us pay $104/month for Medicare.

For me, I lose on Plan F as I have had no big issues and I take one inexpensive prescription.

So back to the OP's question of how much dies Medicare cost? it's a flat rate and has additional insurance options.

My advice: get smart ahead of time in knowing your options to change insurance plans AFTER you have signed on to Medicare. As an example, You don't want to put yourself in a position of wanting to switch from a Medicare Advantage plan into a Medigap Supplemental plan having known pre-existing health conditions. You may not get accepted into a Supplemental Plan at that time.

 

[youbet]

Not hard to end up with $400/mo or more when you combine the cost of Medicare Part B ($105) + Medicare Part D + a Medicare Supplement Plan.

The key to the $400/mo puzzle is that zero deductible/copay Medicare Supplemental Plans can get very pricey as you age. Like you, I recently turned 67 and my BCBS plan F supplemental plan went up to $174/mo. I'm informed that I can look forward to continuing increases as I age.

Currently for me: Part B = 104, Supplement = 174, Part D = 49, Total = 327. I'm planning on the Supplement going up significantly with age so it's just a matter of a few more years until I reach the $400 amount being discussed.

I'm glad for Medicare coverage and, so far, it seems to be working fine. But I can see where someone living on a modest retirement income would describe it as "expensive." An elderly couple living on, say, $40k/yr sounds like a satisfactory situation until you factor in $800/mo (combined) for Medicare. Then, at least to me, the situation sounds pretty tight.

 

[REWahoo]

For me, I lose on Plan F as I have had no big issues and I take one inexpensive prescription.

Maybe you should opt for the high deductible version?

Both DW and I have HD Plan F (we each pay the first $2,140 out of pocket before it kicks in), but we are both (thankfully) relatively healthy. Assuming I still have my wits about me at the time, we may switch to a standard Plan F version if (when?) we become more aggressive consumers of health care services...

 

[FIRE'd@51]

Assuming I still have my wits about me at the time, we may switch to a standard Plan F version if (when?) we become more aggressive consumers of health care services...

I believe you have to go through underwriting to do this.

 

[haha]

The key to the $400/mo puzzle is that zero deductible/copay Medicare Supplemental Plans can get very pricey as you age.

This varies from state to state. In my state, everyone who has a Plan F, for example, pays the same regardless of age.


Ha

 

[aja8888]

The key to the $400/mo puzzle is that zero deductible/copay Medicare Supplemental Plans can get very pricey as you age. Like you, I recently turned 67 and my BCBS plan F supplemental plan went up to $174/mo. I'm informed that I can look forward to continuing increases as I age.

Currently for me: Part B = 104, Supplement = 174, Part D = 49, Total = 327. I'm planning on the Supplement going up significantly with age so it's just a matter of a few more years until I reach the $400 amount being discussed.

I'm glad for Medicare coverage and, so far, it seems to be working fine. But I can see where someone living on a modest retirement income would describe it as "expensive." An elderly couple living on, say, $40k/yr sounds like a satisfactory situation until you factor in $800/mo (combined) for Medicare. Then, at least to me, the situation sounds pretty tight.

The issue with this is what's the alternative to Medicare/Supplemental/ Part D?

I have a neighbor on a Medicare Advantage plan and he is considering trying to switch to a supplemental pan, even though it costs significantly more.

In Texas, those plans are not good (especially around Houston). He is stuck with their doctor choices, pays co-pays, deductibles and some part of various procedures. I originally looked at Texas MA plans and was not impressed as to how they decided your medical needs and choices. Not a good deal if you are not healthy. In some part of the country, MA is reportedly pretty good. But with the gov planning to cut back funding to MA plans, who knows what will happen.

Granted, as you get older, the cost of supplemental plans go up (age group ratings). Those who can't afford the combined costs are faced with difficult choices to make, for sure. Even if someone switches to an MA plan, they will still have significant costs if they need medical care.

 

[youbet]

This varies from state to state. In my state, everyone who has a Plan F, for example, pays the same regardless of age.


Ha

Didn't know that. Thanks! I wish it worked like that here since I'm hard pressed to completely understand my future costs under the Illinois situation.

 

[FIRE'd@51]

In Texas, those plans are not good (especially around Houston). He is stuck with their doctor choices, pays co-pays, deductibles and some part of various procedures. I originally looked at Texas MA plans and was not impressed as to how they decided your medical needs and choices. Not a good deal if you are not healthy. In some part of the country, MA is reportedly pretty good. But with the gov planning to cut back funding to MA plans, who knows what will happen.

Another potential time bomb in Medical Advantage plans is if you have to go on an expensive drug that is not in the plan's formulary. I don't think you are allowed to buy a stand-alone Part D plan if you are in a MA plan. At least with a part D plan, you can switch once a year to another part D plan that covers that drug.

 

[mf15]

This is OT but it drives me nuts about medicare.
Our plan F HD comes with free silver sneakers,wife goes to the gym for Zumba 15-20 days a month. Medicare pays the gym 5 bucks a day, so if she would go 20 days a month that is 100 bucks, in 4 months they could just buy her a year membership,and save the other 800. Of course others may only go 2 times a month so not worth a year membership.
Regardless still drives me nuts when I see the EOB from ins company.
She was lucky enough that Aetna cancelled here MA plan and we could go to
plan F HD,without underwriting. I was thrilled when this happened.

Also part D is a bit tricky,for instance if you are on an expensive drug not in the formulary, too bad no help for you even in catastrophic coverage. But at least you can change plans once a year to another that might have the drug,but of course it will most likely be a more expensive plan.
Old Mike

 

[youbet]

I have a neighbor on a Medicare Advantage plan and he is considering trying to switch to a supplemental pan, even though it costs significantly more.

In Texas, those plans are not good (especially around Houston).

When Illinois cancelled retiree health insurance for retired teachers, DW switched to a Medicare Advantage plan and, so far, it seems to be working fine. All of her current docs and preferred hospitals and labs are in the network, there is good nation-wide coverage, etc.

I'm using a Plan F Supplement with zero deductibles and co-pays. She has an annual deductible and co-pays capped by an out of pocket max. Interestingly, her out of pocket max is almost exactly equal to the difference between the much lower premium she pays and my Part B + Part D + supplement premiums. That is, if she goes all the way to the out of pocket max, her total cost (premium + out of pocket max) is about equal to my premiums for the year. She'd be ahead if she doesn't go to the out of pocket max.

One advantage she has is that her drug coverage has no "doughnut hole."