Medicare for dummies

[utrecht]

Can someone please explain the basics of Medicare? The way I understand it Part A is for hospitalization and is free for anyone who paid medicare taxes while working. Part B is health insurance and costs around $105 or so? Part D is for prescriptions?

Someone is telling me that if I leave my employer health insurance and buy my own, I will get no Medicare subsidy from my employer and I will pay closer to $500 per month for Medicare at 65. This doesnt sound right to me. Any help?

I paid no SS taxes as a police officer but I believe I do have 40 quarters from previous jobs and security work I did on the side while working as a police officer. Does this even have anything to do with Medicare? I paid Medicare taxes my while career.

 

[REWahoo]

Can someone please explain the basics of Medicare?

Sure:

Medicare Explained: Understanding the Basics from Part A to Part D - DailyFinance

 

[GrayHare]

You have it basically correct. The Part B monthly premium varies depending on your prior year MAGI, starting around $100-something, increasing to around $400 if your MAGI as MFJ is over $428,000. Those numbers get tweaked annually.

 

[LakeRat1]

I am new to this as well...and am very confused.. DW is 62 and does not work, left the workforce at 59.5...... I left the workforce at 52...... We live off DWs 401K converted to an IRA, not touching my 401k until I am 59.5...... Today we pay all our health insurance with no subsidies...... When DW turns 65 will there be a cost to Part A? I see that insurance (Medicare) will only be $104 per month......

 

[utrecht]

I'm seeing premiums for Part D around $25-$80 per month. Does that sound right? Someone told me he was quoted $308 just for Part D.

 

[REWahoo]

You can pay under $20/mo for some Part D plans, but plans that cover more expensive drugs cost more (of course). Here is a great site for info on the cost and coverage of Part D plans in your location: https://www.medicare.gov/find-a-plan/questions/home.aspx

Plug in your zip code and take a look...

 

[Silver]

Don't forget the Hold Harmless Clause that may increase medicare costs for some of us enrolling in 2016.

https://medicare.net/medicare-hold-harmless-clause-and-cola/

I have not heard that this is resolved yet...perhaps others here know.

 

[meierlde]

You have it basically correct. The Part B monthly premium varies depending on your prior year MAGI, starting around $100-something, increasing to around $400 if your MAGI as MFJ is over $428,000. Those numbers get tweaked annually.

Note that in addition to part D premiums there is a means test here also that works at the same levels as the part B with a maximum add on of $50 or so per month.

 

[MBSC]

Don't forget the Hold Harmless Clause that may increase medicare costs for some of us enrolling in 2016.

https://medicare.net/medicare-hold-harmless-clause-and-cola/

I have not heard that this is resolved yet...perhaps others here know.

Resolved:

In 2016, the standard Part B premium amount will be $121.80 (or higher depending on your income). However, 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.

Part B deductible is $166 in 2016.

Reference with chart for higher incomes: https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html

 

[GrayHare]

I'm seeing premiums for Part D around $25-$80 per month. Does that sound right? Someone told me he was quoted $308 just for Part D.

Part D monthly is $20 on the low end, around $100 if you are in the highest MAGI category. It can go higher that those numbers if you did not have "creditable rx coverage" before starting Part D, "creditable" generally means rx insurance at least equal to what Part D offers.

 

[meierlde]

For Medigap you can get an idea by searching for aarp medigap and dowloading the rate sheet for your state (the web site will select your state in a lot of cases)

 

[Bamaman]

Most on Medicare are also drawing Social Security, and have their $105 premium withdrawn from their monthly check.
I also have a Supplement through United Healthcare that picks up where Medicare stops and costs about $50 a month each for my wife and I. It's taken out of my ex-MegaCompany pension.
We pay about $20 a month for Part D coverage for medicine to an outside insurance company.
I was paying $420 to purchase healthcare coverage through my employer, but Medicare and the supplements are cheaper than before I became eligible. But there are still co-pays and deductibles that must be met.
I suggest you go into Wikipedia.com to read a good dissertation on Medicare.

 

[utrecht]

I started this thread because I although I have been retired since January 2015, my employer group health insurance at employee rates ends in Feb 2016. I can continue with the insurance but at retiree rates which would be about $1500/ month for the 3 of us.
I can get a similar individual PPO policy for about $1100 or an HMO policy for $680 per month. I have no intention of paying $1500 per month but former co-workers keep warning me that once I dump the employer insurance I can never go back and that Medicare will be more expensive. These are not very financially savvy people which is why I came here to ask.

One of them told me their Part B wouldve been $485 if they had given up the group insurance earlier. One of them told me Part D was $308. They made it sound like the employer was subsidizing rates at 65 if the employee had stayed with their group insurance the entire time from retirement to 65, but Im pretty sure they are mistaken.

The waiver that I have to sign to drop the employer insurance says in part "I acknowledge that I lose any Medicare subsidy previously provided to me". I have no idea what that means and Im not sure anyone else does either. The employee benefits people cant explain it to me.

 

[aja8888]

I started this thread because I although I have been retired since January 2015, my employer group health insurance at employee rates ends in Feb 2016. I can continue with the insurance but at retiree rates which would be about $1500/ month for the 3 of us.
I can get a similar individual PPO policy for about $1100 or an HMO policy for $680 per month. I have no intention of paying $1500 per month but former co-workers keep warning me that once I dump the employer insurance I can never go back and that Medicare will be more expensive. These are not very financially savvy people which is why I came here to ask.

One of them told me their Part B wouldve been $485 if they had given up the group insurance earlier. One of them told me Part D was $308. They made it sound like the employer was subsidizing rates at 65 if the employee had stayed with their group insurance the entire time from retirement to 65, but Im pretty sure they are mistaken.

The waiver that I have to sign to drop the employer insurance says in part "I acknowledge that I lose any Medicare subsidy previously provided to me". I have no idea what that means and Im not sure anyone else does either. The employee benefits people cant explain it to me.

Medicare is individual coverage for people who reach 65. There are no family plans. It sounds like your fellow co-workers don't know what they are talking about. Get with a Medicare rep or a broker that sells supplemental policies and have them explain to you what you can expect.

 

[meierlde]

Medicare is individual coverage for people who reach 65. There are no family plans. It sounds like your fellow co-workers don't know what they are talking about. Get with a Medicare rep or a broker that sells supplemental policies and have them explain to you what you can expect.

Also go to medicare.gov in particular this page:https://www.medicare.gov/your-medicare-costs/costs-at-a-glance/costs-at-glance.html

Now it may be that coworkers are talking including medigap as well. Part B could go to 400+ if you are single at 214k or above or married at twice that.
Medicare part B does raise premiums if your total income including muni bonds is above 85 k single and 170 married.

 

[kaneohe]

An excellent primer........you might be able to find at your local library
http://www.amazon.com/Medicare-Dumm...643&sr=8-1&keywords=medicare+for+dummies+2016

Be sure to learn about medicare supplement (medigap) plans
https://www.medicare.gov/supplement-other-insurance/index.html

Medicare covers 80% of pt B costs after deductible. You pay 20%.
20% of a big number is still a big number so you may want to get a medigap
(supplement) policy. The key thing to remember is that you may get 1 chance to pick the right one when you first enroll for medicare.........after that, depending on state laws, you may have to qualify via medical exam. Even if you're healthy now, you may not always be. Learn about supplements vs
advantage plans.