Medicare is a federal healthcare program that provides insurance to people 65 or older and younger individuals with disabilities. It was created by the Social Security Act of 1965, and it was designed to provide medical coverage and financial protection for those who are elderly.
Some Medicare premiums are based on your income, which means that if you have a low or high income, you will pay less or more than others in your age bracket for Medicare Part B or D if you choose to enroll.
How Does Income Affect Medicare Premiums?
Medicare Part B and Part D premiums are based on your modified adjusted gross income (MAGI), which is your total adjusted gross and tax-exempt interest income. If you make more than a certain amount, you will not only have to pay the standard premium, but you will receive an IRMAA notice as well. IRMAA, or Income-Related Monthly Adjustment Amount, is the additional amount added to your Part B and Part D monthly premiums.
Below are the amounts you can expect to pay in 2023 for Part B and Part D if you must pay IRMAA:
How Much Will I Pay For Medicare If Social Security Is My Only Source Of Income?
Suppose Social Security is your only source of income. In that case, your Part B deductible will automatically be withdrawn from your monthly checks. You’ll pay about $164.90 monthly for Part B coverage in 2023. Most beneficiaries do not pay for Part A (hospitalization coverage).
What Happens If Medicare Premiums Go Up?
Suppose Medicare premiums go up, but you are receiving Social Security benefits. In that case, the amount of money you receive each month will not change thanks to the “hold harmless” provision, which prevents your SS payments from being reduced.
How Can I Find Out How Much Medicare Will Cost Me?
Your costs will vary depending on the services you receive. For a full explanation of all costs and services, contact Toni Buffington Medicare Solutions today.