How much will my Medicare cost me?
Cost of Medicare Coverage: Navigating the Labyrinth of Options
Important Terminologies
It’s important to recognize some health insurance terms and elements to better understand how
Medicare works and the cost sharing that beneficiary might incur.
Premium: The amount you pay to stay enrolled in a plan every month.
Deductible: an amount you must pay out of your pocket before your plan kicks in.
Coinsurance: The percentage of cost of a covered service the beneficiary share with his/her health
insurance after satisfying the deductible.
Co-payment: an amount you’re required to pay for a medical service at the time of the visit.
Medicare Costs for 2023
Are you wondering what Medicare will cost you in 2023? The center for Medicare and Medicaid services
(CMS) announced the premium and other Medicare cost.
On some occasions, CMS increases premiums due to the increase in healthcare costs, inflation,
expensive new drug etc.
1. Medicare Part A Cost
- Part A Premium: Most people qualify for premium-free Part A if
- Individual or their spouse have worked and paid Medicare taxes for 10 years or
more (40 quarters)
For those who don’t qualify for premium-free Part A, they must pay a monthly Part A premium which is the following in 2022:
-Individual or their spouse who paid Medicare taxes for 30-39 quarters must pay $274/month
-Individual or their spouse who paid Medicare Taxes for less than 30 quarters must pay $499/month
People who are not eligible for Part A premium-free and who don’t buy Part A when they’re first eligible may pay a late enrollment penalty of up to 10% unless qualify and enroll during a special enrollment period (SEP)
- Part A costs if you have original Medicare
- Hospital Stay: Individual pays
-$1556 deductible per benefit period
-$0 for the first 60 days of each benefit period
-$389 per day for days 61-90 of each benefit period
-$778 per lifetime reserve day after day 90 of each benefit period up to maximum of 60 days
- Skilled Nursing Facility stay: Individual pays
-$0 for the first 20 days of each benefit period
-$194.50 per day for days 21–100 of each benefit period
-All costs for each day after day 100 of the benefit period
2. Medicare Part B Cost
- Part B Premium: Most people pay the monthly standard rate for Part B which is $170.10 in 2023
How is my Part B premium calculated?
Your Part B premium is calculated based on your modified adjusted gross income (MAGI) reported on
your tax return from 2 years ago, depending on your tax filling status or income, you may pay additional
charge known as (Income Related Monthly Adjustment Amount IRMAA)
- Part B costs if you have original Medicare
-$233 deductible per year
-20% co-insurance of the Medicare approved cost amount
3. Medicare Part C cost
To enroll in Medicare Part C (Medicare Advantage), Individual must be intitled to Part A and
enroll in Part B (Pay Part B premium), Medicare advantage plans offer different coverage (HMO,
PPO, PFFS etc.) in which most of the plans have a $0 additional monthly premium but that will
vary based on the plan’s availability in your area, co-payment, deductible, co-insurance and
maximum out of pockets.
4. Medicare Part D cost
The nation average premium for Part D plan is $33 per month in 2023. Generally, the premium you’ll
pay for Part D varies based on income (If your income is above a certain limit, you’ll pay an
income-related monthly adjustment amount in addition to your plan premium), the area you live in
and the type of plan you choose.
