How much does Medicare cost?

Click on words in blue for definitions.

 

Part A – There is no premium for Part A for those who are eligible for Medicare.  

If you are admitted to a hospital in 2018, you would be responsible for a $1,340 copayment, which covers hospital services for a period of up to 60 days.

Part B – Your premium is based on your “modified” adjusted gross income.  That is your income as reported on your IRS tax return from 2 years ago plus any tax-exempt interest you may have received, such as from a municipal bond.

The first time you use the Part B benefit in 2018, you will be responsible for paying a deductible amount of $183.00.  You also are responsible for paying 20% of the Medicare approved amount for the service you receive.

For 2018, the Part B premiums are shown below.

If your modified adjusted gross income for 2015 was: Your monthly
premium will be:
File Individual Tax Return File Joint Tax Return  
$85,000 or less $170,000 or less $134.00*
$85,000 – $107,000 $170,000 – $214,000 $170.50
$107,000 – $160,000 $214,000 – $320,000 $243.60
$160,000 – $214,000 $320,000 – $428,000 $316.70
above $214,000 above $428,000 $389.80

The additional monthly premium paid by higher income individuals is known as the “Income Related Monthly Adjustment.”  If you are subject to this additional premium for Part B, you will also be subject to additional premium for Part D Prescription Drug coverage, whether you get your Part D as part of a Medicare Advantage Plan or as a stand-alone plan.

Part B premium is deducted from your monthly retirement payment. If you are not yet getting retirement benefits, you will be sent a bill for your Part B premium.

* Your monthly Medicare Part B premium could be $130.00 instead of $134.00 in 2018 if you were paying a lower monthly Part B premium in 2017 and are grandfathered in at this lower rate.