How much do you budget for Medicare prems?

[Carpediem]

Working on my budget for the Medicare years and was wondering how much others budget for healthcare prems at age 65+. I just read a Motley Fool article from 2017 that showed average monthly Medicare premiums at $635. Does this seem about right? I realize there are other out of pocket costs but I'm interested in just premium costs for now.

 

[meleana]

There are a lot of different options so it will vary. Part A is free. Part B has a low premium- $135 per month or something like that.Then there are actually Advantage plans that have $0 premiums. They basically "replace' traditional Medicare.


Then, instead if you choose, there are the Medigap ones that supplement Part A and B that can cost several hundred dollars per month depending on which one you choose. There are many options. Part G is a popular one. And don't forget Medicare Part D (for prescriptions) has to be factored in there with those.


I am not on it yet so I can't be more specific than this.

 

[jkern]

I don't believe the average is $635 for one second. For most people, Medicare is about $135 with a pretty decent second insurance anywhere from $100 to $250. No way the average is $635.

 

[Another Reader]

If your income is high, you will have to pay IRMAA adjustments on Parts B and D. Those adjustments can be quite large. Take a look at these tables.

https://secure.ssa.gov/poms.nsf/lnx/0601101020

If you are not high income and don't have to pay IRMAA, premiums for supplemental policies do increase with age. Selecting a low cost provider helps, as the cost spread is high. I'm just starting out with Medicare, so I pay Part B, about $135, UHC Plan F, about $128, And the lowest cost Aetna Plan D, about $19. Total for premiums alone is $282.

 

[W2R]

I don't believe the average is $635 for one second. For most people, Medicare is about $135 with a pretty decent second insurance anywhere from $100 to $250. No way the average is $635.

+1

Maybe they are talking about coverage for a couple, rather than a single person. Otherwise I can't make any sense out of $635.

I am single and my Medicare Part B, plus federal retiree medical insurance (that supplements it), together add up to $380.68. But I have no deductible or co-pay; there are other choices with lower premiums that are available but ding you on the deductible and co-pay.

 

[Carpediem]

Oops, my reading comprehension skills are not so good today. Sorry for the confusion and thank you for straightening me out. Now I'm feeling better about my 65+ budgeting numbers.

Below are the estimates from the article and the article is linked below:

Expense	Average Monthly Cost
Part B Premiums	$109
Other Premiums	$0
Inpatient Care	$34
Outpatient Prescription Drugs	$350
Dental Services	$40
All Other Healthcare Services	$102
Total Monthly Costs	$635

https://www.fool.com/retirement/2017/02/05/heres-the-average-americans-annual-medicare-bill.aspx

 

[REWahoo]

From the linked article:

... the average American with "original Medicare" (Parts A and B) can expect to pay a total of $7,620 out of pocket for healthcare expenses this year. However, that number doesn't tell the whole story. Some of this amount comes from Medicare premiums, and some includes various costs such as prescription medications.

So the $635 number includes other costs in addition to Medicare premiums.

 

[Rianne]

We have 3 years to Medicare. The monthly costs here differ. We have W2R who actually is on medicare (looks like a very nice plan), the ssa.gov website (should be believable) and Motley Fool. I've always wondered what the closest actual figures might be, but that could change considerably 3 years from now. Also depends on your income and medical needs, am I right?

 

[Dash man]

Working on my budget for the Medicare years and was wondering how much others budget for healthcare prems at age 65+. I just read a Motley Fool article from 2017 that showed average monthly Medicare premiums at $635. Does this seem about right? I realize there are other out of pocket costs but I'm interested in just premium costs for now.

Whatever it takes. We go on Medicare in 2 1/2 years and whatever we pay will be substantially less than what we’re paying now!

 

[REWahoo]

One more data point: my Medicare Part B ($135), Part D ($11), and Plan N Medigap policy ($88) totals $234/mo.

 

[MichaelB]

From other thread discussions on Medicare I have noticed some pretty big differences in MediGap premiums around the country. For example, REWahoo notes in his post the plan N premium is $88 where he lives in Texas. Here in Fl my MediGap G is $258. I looked at the N option but is was just a bit less expensive - $238 IIRC.

For that reason I would ignore “average” Medicare costs and look at costs for my zip code.

 

[aja8888]

Us (each) per month: 10 years on
medicare

Part B - $134.00
Part D - $28 (me), $84 (DW)
Medigap (DW) Plan F (full) ~$200
Medigap (me) Plan G - $195

OOP Meds - ~$4,000 yearly for DW (she takes a lot of expensive drugs. Much of this added cost is for the donut hole.)

OOP Meds - $32 yearly for me (I am pretty healthy)

Other:

Dental/oter not covered by Medicare - Full OOP costs - If I told you how much we spent here in the last ten years, you would be shocked!

 

[REWahoo]

For that reason I would ignore “average” Medicare costs and look at costs for my zip code.

^ What MichaelB said.

 

[rk911]

Working on my budget for the Medicare years and was wondering how much others budget for healthcare prems at age 65+. I just read a Motley Fool article from 2017 that showed average monthly Medicare premiums at $635. Does this seem about right? I realize there are other out of pocket costs but I'm interested in just premium costs for now.

i'm 68, the wife is 67.

part b premium: ~$200
plan f supplement: ~$175
part d premium: ~$75

that's for each of us or ~$900 monthly total.

 

[SheitlQueen]

I've been researching this since I go on Medicare this July.
Part B: $135
Medigap Plan G: $131
Plan D: Still researching, cheapest is $18 but can go up a lot from there.

 

[meleana]

i'm 68, the wife is 67.

part b premium: ~$200
plan f supplement: ~$175
part d premium: ~$75

that's for each of us or ~$900 monthly total.

That is outrageous for older people to have to pay, Just shameful in this country. Especially for people who really depend on their SS checks. A horror. Didn't we all pay into the system when we were working?

 

[Dtail]

That is outrageous for older people to have to pay, Just shameful in this country. Especially for people who really depend on their SS checks. A horror. Didn't we all pay into the system when we were working?

It is a shame, but it would appear they are paying around ~$108 higher each month for Part B due to MAGI being over 170k.
So it goes back to the concept of should higher income "earners" in retirement pay more medicare taxes?

 

[kaneohe]

That is outrageous for older people to have to pay, Just shameful in this country. Especially for people who really depend on their SS checks. A horror. Didn't we all pay into the system when we were working?

Nothing is for free...........if older people don't pay, then the same folks will have to pay more while they are younger and working. Or ......pick another target to squeeze.........

 

[Bir48die]

Nothing is for free...........if older people don't pay, then the same folks will have to pay more while they are younger and working. Or ......pick another target to squeeze.........

+1

Basically $139/mth to cover much of what you'll need between Part A&B. Huge menu of supplemental plans. I am less concerned about costs for senior versus the number of doctors declining to see new Medicare patients. There's a huge fight on levels of reimbursement levels. Many people have to search high and low to find another doctor if theirs retires or moves out of the area.

 

[W2R]

+1

Maybe they are talking about coverage for a couple, rather than a single person. Otherwise I can't make any sense out of $635.

I am single and my Medicare Part B, plus federal retiree medical insurance (that supplements it), together add up to $380.68. But I have no deductible or co-pay; there are other choices with lower premiums that are available but ding you on the deductible and co-pay.

Oops, my reading comprehension skills are not so good today. Sorry for the confusion and thank you for straightening me out. Now I'm feeling better about my 65+ budgeting numbers.

Below are the estimates from the article and the article is linked below:

Expense	Average Monthly Cost
Part B Premiums	$109
Other Premiums	$0
Inpatient Care	$34
Outpatient Prescription Drugs	$350
Dental Services	$40
All Other Healthcare Services	$102
Total Monthly Costs	$635

https://www.fool.com/retirement/2017/02/05/heres-the-average-americans-annual-medicare-bill.aspx

OK, if we are talking about ALL healthcare costs, then my average for the first five years of Medicare has been $755/month. A lot of that was due to dental implants, and would have been less had I chosen some other way to deal with those teeth. My implants are wonderful and well worth the money to me. But they are optional.

Also, AFAIK Medicare Part B premiums start at $135.50/month now, so perhaps the numbers in that article might be outdated.

 

[audreyh1]

That is outrageous for older people to have to pay, Just shameful in this country. Especially for people who really depend on their SS checks. A horror. Didn't we all pay into the system when we were working?

Are you familiar with the IRMAA? Higher income people pay a lot more in Medicare premiums both for Part B and Part D.

Medicare costs jump significantly when income exceeds $170K per couple, and there are several steps above that with large increases in the monthly rate each step.

 

[Spanky]

That is outrageous for older people to have to pay, Just shameful in this country. Especially for people who really depend on their SS checks. A horror. Didn't we all pay into the system when we were working?

+1 "during 2015 health expenditures per-person were nearly $10,000 on average, with total expenditures of $3.2 trillion or 17.8% GDP"

Great for health care insurance companies and health care professionals and providers.

it must be higher now in 2019.

 

[Spanky]

IRMAA is another way to squeeze more money out of you.

 

[audreyh1]

IRMAA is another way to squeeze more money out of you.

Well - it’s an attempt to pay for Medicare having high income folks shoulder a larger burden. Medicare has to be paid from somewhere. Would you rather the shortfall come from the general fund, and people not yet receiving Medicare pay for more of it?

 

[KB]

I pay $135.50 for Medicare Part B and $44 for Medicare Advantage which includes Part D. I have Kaiser Advantage in California. I had Kaiser through my employer before I retired, and decided to stay in that Health care system.

After I retired, I converted my policy with Kaiser to an individual plan and paid for it for 12 years until I qualified for Medicare. Medicare saves me about $500 a month from what I paid previously.